Answer:
$65
Explanation:
The calculation of the break even price for this position is given elow:
Break even price is
= Strike price - premium
= $70 - $5
= $65
The stock goes increase i.e. upwards to $65 so the amount that lose is only $5 but it declines than the stock would be $0
Therefore, the break even price of this position is $65
So, by using the above formula we can get the break even price and the same is to be considered
Answer:
inflation <u>SHOULD BE</u> included explicitly in the cash flow analysis, and debt payments by the subsidiary <u>SHOULD BE</u> included explicitly in the cash flow analysis.
Explanation:
A capital budgeting analysis is carried out in order to determine how a company should invest their capital assets.
The discounted cash flow method is the primary tools used in this type of analysis. Cash flows from foreign countries that have high inflation rates will be negatively affected since high inflation tends to currency depreciation which in turn leads to lower cash flows in US dollars. The same applies to debt payments made by the subsidiaries since they also reduce net cash flows. Lower net cash flows result in lower NPV and IRR.
Answer: <em>Cost of Goods Manufactured = $ 660,000</em>
Explanation:
Direct Material Used $ 240,000
Direct labor $ 250,000
Manufacturing overheads applied $ 150,000
Total manufacturing Cost $ 640,000
Add: Work in process $ 40,000
Total Manufacturing cost $ 680,000
Less: Work in process $ 20,000
Cost of Goods Manufactured $ 660,000
Answer:
Interest paid in cash in 2018 = $0
Interest recognized on the Income statement = $1,800
Liabilities recognized = $90,000
Amount paid for Principal and interest = $93,600
Interest reported on 2019 Income statement = 1800
Explanation:
Interest paid in cash in 2018 is zero because interest and principal were paid in cash on the maturity date.
Interest recognized in 2018 = 90000*0.08*3/12 = $1800
liabilities are recognized at original amount because the interest is not capitalized and no payment made thus far.
Amount paid on maturity date is 93,600 ( 90000 principal, 3600 interest)
interest reported is for three months jan - march
Answer:
The amount of money created will be $1,250,000
Explanation:
In order to find the maximum amount of money that will be created in the banking system as a result of a deposit, we need to find the money multiplier.
Multiplier = 1/reserve ration = 1/0.2 = 5
The amount of money created = Multiplier *Initial deposit
Amount of money created = 5* 250,000
= 1,250,000
