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Shkiper50 [21]
3 years ago
6

David, a trader, wants to buy 1,000 shares of XYZ stock, while a second trader, Alexis, is willing to sell 1,500 shares of the s

ame stock. Unfortunately, David and Alexis don't know one another and must complete their transactions using the stock exchanges market-making deale. KYZS market maker is willing to sell her shares for $34.85 per share and purchase additional shares for $34 per share. Select the most appropriate values in the following table: Value Term Bid price Ask price Bid-ask spread If the market-maker is willing to purchase the entire block of 1,500 shares from Alexis and, from that block, resell 1,000 shares to David, then the market-maker's net profit from David's transaction-excluding any inventory effects-will be
Business
1 answer:
Mariana [72]3 years ago
7 0

Answer:

Market Maker's Net Profit = $850

Explanation:

David will buy the 1,000 shares he wished to buy at the Market Maker's sell price of $34.85 (since he is buying from the Market Maker).

Alexis, will sell her 1,500 shares to the Market Maker at the Market Maker's buy price of $34.

Therefore, excluding any inventory effect, the Market Maker's net profit from David's transaction

= sales price less purchase price

= (1,000 * 34.85) - (1,000 * 34) (the other 500 units the Market Maker purchased from Alexis will be in inventory and will not be considered)

= 34,850 - 34,000

= $850.

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Capital Consulting Company had 390,000 shares of common stock outstanding on December 31, 2017. On that date, there were also 4,
Nina [5.8K]

Answer:

Basic earning per share = $3.69

Explanation:

Earning per share (EPS) = earnings available to ordinary shareholders/ number of ordinary shares

Number of ordinary shares = 390,000 × 2 = 780,000 units

Net income                                           2,900,000

Preferred dividend                               <u>  ( 24,000)</u>

Earnings available to shareholders     <u>2,876,000</u>

Number of ordinary shares                   780,000 units

Earnings per shares =   $2,876,000/780,000 units

                                  = $3.69

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3 years ago
Rosa works at a gelato shop and observes that the number of people buying gelato varies greatly from day to day. for a couple of
rosijanka [135]
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Jenna isn’t sure if she should buy an extended warranty for her new laptop. Use the PACED decision-making process to help her de
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Problem: 
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Alternative:
1) Buy extended warranty
2) Not buy extended warranty

Criteria:
Practical and cost saving in the long-run

Evaluate Alternatives:
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2) Not buy extended warranty
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2. The following table provides information about the production possibilities frontier of a Country.(4)
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Based on the PPF of the country, if the country were to produce an additional 20 computers at that level, the opportunity cost would be 40 kg of wheat.

If a technological advancement allows for computers to be produced more efficiently, the PPF would expand outwards as shown in the attachment.

<h3>What would be the opportunity cost?</h3>

At the point where this country can produce 10 computers, the amount of wheat it can produce is 400 kg wheat.

If it produces 20 more computers, it will move to the point where it can produce 30 computers and 360 kg of wheat. Opportunity cost would be:

= 400 - 360

= 40 kg wheat.

<h3>What happens due to a technological advancement?</h3>

When there is an improvement in technology, the production capacity of a nation increases. This leads to the production possibilities frontier expanding outward.

Find out more on the production possibilities frontier at brainly.com/question/26685094.

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