Answer: Option B
Explanation:
Call option is the purchase of the right to purchase the product at a fixed price before the time agreed. Buying call options, would limit the risk level to the premiums paid for the calls. So the option A is correct and by the exercise of this call option early cannot limit risk on the portfolio. The remainder two are the benefit of purchasing call options.
Answer:
Science, Technology and Society (STS) is an interdisciplinary field that studies the conditions under which the production, distribution and utilization of scientific knowledge and technological systems occur; the consequences of these activities upon different groups of people.
Explanation:
Answer:
Estimated manufacturing overhead rate= $38.25 per direct labor hour
Explanation:
Giving the following information:
Zephyros Corporation had estimated manufacturing overhead costs for the coming year to be $306,000. The total estimated direct labor hours for the coming year are 8,000
To calculate the estimated manufacturing overhead rate we need to use the following formula:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 306,000/8,000= $38.25 per direct labor hour
No, it depends on the company.
Answer:
Option (a) is correct.
Explanation:
Given that,
Equity = 140 Millions
Debt = 155 Millions
Debt Equity Ratio = Debt ÷ Equity
= 155 Millions ÷ 140 Million
= 1.11
KCE is financing its new project with 25 Millions
Let the New debt issued by x
and the New equity financed be (25-x)
.
Debt Equity Ratio = Debt ÷ Equity
1.11 = (155 + x) ÷ (140 + 25 - x)
1.11 = (155 + x) ÷ (165 - x)
183.15 - 1.11x = 155 + x
28.15 = 2.11 x
x = 13.34
Option (a) is the most nearest to this answer.
New Debt = 155 + 13.34
= 168.34 Millions
New Equity = 140 + 11.66
= 151.66 Millions
