Answer:
"The firm has high credit risk" is the correct answer.
Explanation:
- A Z-Score exceeding 2.99 indicates an organization becomes focused mostly on the economic projections throughout the safe space. Throughout the Grey Zone, a Z-Score among 1.8 as well as 2.99 means that there is indeed a reasonable possibility that the business will go bankrupt throughout the next 2 years.
- In the meantime, mostly in Distress Zone, just one Z-Score under 1.80 suggests a high likelihood of discomfort during this timeframe.
Answer:
B. The price of the call option will increase by less than $2, but the percentage increase in price will be more than 10%.
Explanation:
Given
Trading price = $20
Exercise price of call option = $20
Call option price = $1.50
Price increment = 10% to $22
It's not be noted that the discounted present value of a price of an option is represented by its expected payoff.
An increment of $2 in stock price attracts an increment of more than $2 in the payoff option.
Having highlighted that, it's also to be noted that the increment in expected payoff will be by an amount less than $2 and same with present value because the possibility is less than 1. So, the price of the option will increase by less than $2.
Moving to the percentage increase;
This will be larger than 10%.
This is because when stock price increases by 10%, the value of the option will increase by more than 10%.
The error of Naomi is that she included the receipts of interest, receipts of dividends, and proceeds from planned sales of plant assets in the cash receipts section. This section would only include the cash sales and collection of accounts receivable with the forecasted sales per month of the company. As a result of this error, the cash receipts would be too high.
Answer:
There convincing indications in the questions that suggest that the requirement is to prepare journal to record the transactions.
Find all the journal entries in the explanation section below
Explanation:
The re-acquisition of 114 shares on July 1,2020, gave rise to the below journal
Dr treasury stock(114*$89) $10146
Cr Cash $10146
Being payment made for stocks reacquired
The issuance of 61 shares at the price of $94 each gave rise to the below journal:
Dr Cash $5734
Cr Treasury stock($89*61) $5429
Cr paid-in capital $305
Being receipt of cash on shares issued
The issuance of additional shares on November 1,2020,gave rise to below journal:
Dr Cash(53*$85) $4505
Dr Paid-in capital ($89-$85)*53 $212
Treasury stock $4717
Being receipt of cash on shares issued
Answer:
Sales contest.
Explanation:
In this scenario, every monday during the month of December, salespeople who had the highest sales the previous week participated in a package surprise, where each would receive a package containing either a $50 or a $100 bill. This short-term incentive is known as a sales contest.
A sales contest can be defined as a short-term incentive program developed or created by a business entity to motivate its sales personnels in order to achieve specific sales objectives and targets.
<em>Basically, it is mainly competitive so as to motivate and stimulate salespeople to meet set objectives, goals and targets by duly rewarding with prizes. </em>