Answer:
$150,300
Explanation:
The computation of the correct initial cash flow is shown below:
= Capital expenditure + net after taxes + initial investment in inventory
= $33,000 + $112,000 + $5,300
= $150,300
The net after taxes is also term as opportunity cost
And, the initial investment in inventory is also term as change in working capital
All other information which is given is not relevant. Hence, ignored it
Answer:
a) $8
b) $4
c) Decrease
Explanation:
Background.
A call option as you probably know, is an agreement to buy an asset on or before a particular day at a price already determined in the agreement.
a) the Intrinsic value of the option is the market price minus the strike price.
Intrinsic Value = Market Price - Strike price
= $43 - $35
= $8 per share.
It is worthy of note that for an option, of the intrinsic value dips into negative figures it is just said to be 0.
b) To calculate the time value, we subtract the intrinsic value from the call premium
= Call Premium - Intrinsic value
= $12 - $8
= $4
c) The call option has 6 months to maturity and the dividends are to come in 3 months. Share prices usually drop after a dividend has been paid so because the call option matures in 6 months, the price of the call option will DECREASE owing to the Expected drop in stock price.
Answer:
The statement is correct as well as true
Explanation:
In the cash basis of accounting, is the one of the methods or way of recording the accounting transactions for expenses as well as revenue only, when the corresponding cash is collected or received or payments are made.
Whereas the revenues will be recorded only when the customer pay for the billed service or the product and also record the payable when it is paid by the company.
Therefore, in the cash flows accounting, the timing of recording the inflows and the outflows of the cash matches the reporting of the expenses and revenues in the income statement.
The European union and the World trade organization have trade policy as common.
<u>Explanation:
</u>
World Trade Organization (WTO) comprises governments and border control territories that establish, implement, and enforce international trade rules. European Union and the individual EU Member States are members of WTO.
To make sure that rules-based global trade process, the WTO is involved. Despite the deadlock in negotiations, ways are being examined to upgrade WTO rules and tackle new international challenges.
New developments in the WTO trade rules have been brought about by the coming into effect of the Trading Facilitation Agreement in February 2017. Parliament passes legislation in conjunction with the Council under the Treaty of Lisbon and has a major accountability role on global trade policy.
Answer:
Explanation:
Attached is a solution to the question
