Answer:
correct option is a. −$59.03
Explanation:
given data
Old cost of capital (r) 8.00% New cost of capital (r) 11.25%
year 0 1 2 3
cash flow -$1000 $410 $410 $410
solution
we know that here old cost of capital (r) NPV will be
old cost of capital (r) NPV = cash flow 0 year + cash flow × 
put here value
old cost of capital (r) NPV = -1000 + 410 × 
old cost of capital (r) NPV = $56.61
and
new cost of capital (r) NPV will be
new cost of capital (r) NPV = cash flow 0 year + cash flow × 
put here value
new cost of capital (r) NPV = -1000 + 410 × 
new cost of capital (r) NPV = -$2.42
so difference is
Difference = -$2.42 - $56.61
Difference = -$59.03
so correct option is a. −$59.03
Answer:
B.right, sell
Explanation:
Put option is a contract giving owner the right not obligation to sell the underlying asset or stocks at predetermined price (strike price) before the specified time. Put option protect the owner from loss if the price of underlying asset goes below the strike price in the specified period of time. It also help the owner to sell the stock obove the market price as specified earlier to earn some profit for owner. There is another option available in contrast to put option is called Call option, which gives right to buy underlying asset at specified price and time. These option help the owner to avoid loss and earn profit.
Answer:
d. mostly relevant to the long run.
Explanation:
In economics or financial accounting, money can be defined as any asset used by an individual or business entity to make purchases of goods and services at a specific period of time.
Simply stated, money refers to any asset which can be used to purchase goods and services by customers.
This ultimately implies that, money is any recognized economic unit that is generally accepted as a medium of exchange for goods and services, as well as repayment of debts such as loans, taxes across the world.
Additionally, the rate at which an asset can be used to purchase any goods or services refers to its liquidity. Thus, liquidity is a quality or characteristics of money as a medium of exchange. Therefore, money is a generally accepted medium of exchange around the world.
The three (3) main functions of money all over the world are;
I. Medium of exchange.
II. Unit of account.
III. Store of value.
The principle of monetary neutrality typically based on the idea that changes in any stock of money would affect only nominal variables such as exchange rate, wages and price in the economy of a particular country.
Most economists believe the principle of monetary neutrality is mostly relevant to the long run.
Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Let the original price be x.
then,
x- 25% of x= 24
x- 25x/100 = 24
x- x/4=24
3x/4=24
3x= 96
x= 32
in short...the original price= 32 dollars