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Harlamova29_29 [7]
3 years ago
13

2) You purchase one MBI July 125 call contract (equaling 100 shares) for a premium of $5. You hold the option until the expirati

on date, when MBI stock sells for $123 per share. You will realize a ________ on the investment. A) $200 profit B) $200 loss C) $500 profit D) $500 loss
Business
1 answer:
PtichkaEL [24]3 years ago
8 0

Answer:

D) $500 loss

Explanation:

The computation of the realized value on the investment is shown below:

= Number of shares × premium

= 100 shares × $5

= $500 loss

Since the call is for 125 shares for $125 and the selling price per share is $123  due to which the contract is not implemented. So the premium amount would be recorded as a loss of $500

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An investor purchases one municipal and one corporate bond that pay rates of return of 8% and 10%, respectively. If the investor
Alinara [238K]

Answer:

rate of return will be 8% and 8%

Explanation:

given data

municipal bond = 8%

corporate bond = 10 %

marginal tax = 20 %

solution

we know that here

Municipal bond no taxes are levied

hence after tax rate of return will be 8%

and

Corporate bond

after tax rate of return will be

rate of return   = 10% × ( 1 - 0.20 )

rate of return   = 8 %

5 0
3 years ago
Saira's Maid Service began the year with total assets of $120,000 and stockholders' equity of $40,000. During the year the compa
Whitepunk [10]

Answer:

$110,000

Explanation:

Calculation for How much was stockholders' equity at the end of the year

Beginning balance of stockholders' equity $40,000

Add net income $90,000

Less the dividends paid ($20,000)

Ending stockholders' equity $110,000

Therefore How much was stockholders' equity at the end of the year is $110,000

5 0
3 years ago
The resource-based view differs from the institution-based view in that the resource-based view focuses on a firm's _____.
Vladimir79 [104]

The resource-based view differs from the institution-based view in that the resource-based view focuses on a firm's internal strengths and weaknesses.

Resources are all materials available in our environment that are technically accessible, economically feasible, culturally sustainable, and that help meet our needs and desires. point.

Resources are physical materials that people need and value, such as land, air, and water. Resources are characterized as renewable or non-renewable. Renewable resources are automatically renewed as they are consumed, while non-renewable resources have limited availability.

1a: Source or Support: Available Resources - Usually used in the plural. b : natural source of wealth or income - often used in the plural. c : Natural features or phenomena that improve the quality of human life. d : computable wealth - usually used in the plural.

Learn more about resource here:brainly.com/question/24514288
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7 0
2 years ago
The balanced scorecard approach
AnnyKZ [126]

Answer: The correct answer is "c. normally sets the financial objectives first and then sets the objectives in the other perspectives to accomplish the financial objectives.".

Explanation: The balanced scorecard approach normally sets the financial objectives first and then sets the objectives in the other perspectives to accomplish the financial objectives.

The balanced scorecard states that we must focus on the organization from four perspectives and that goals, measures, rules or objectives be developed for these perspectives.

The 4 perspectives are:

- Financial: which is the most important one whose objectives are established first and the objectives of the other perspectives will be established in order to meet the objective of the financial perspective.

-Client

-Internal processes

-Organizational capacity

3 0
3 years ago
A manufacturing company that produces a single product has provided the following data concerning its most recent month of opera
quester [9]

Answer:

$61,200

Explanation:

The computation of the total period cost for the month under absorption costing is shown below:

= Fixed selling and administrative expense +  Variable selling and administrative expense rate × number of units sold

= $34,000 + 6,800 units × $4

= $34,000 + $27,200

= $61,200

As we know that the period cost includes the major part of the selling expenses and we applied the same for the above computation

5 0
3 years ago
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