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algol [13]
3 years ago
11

The current market value of the assets of AMN Co. is $47 million, with a standard deviation of 21 percent per year. The firm has

zero-coupon bonds outstanding with a total face value of $35 million. These bonds mature in two years. The risk-free rate is 3.6 percent per year, compounded continuously. What is the value of d1 as it applies to the Black-Scholes option pricing model
Business
1 answer:
larisa [96]3 years ago
8 0

Answer:

The answer is "1.38357"

Explanation:

Given values:

The current market value of the assets (s)= $ 47

standard deviation(\sigma) = 21%

risk-free rate (r)=3.6%

Exercise price (X) = 35

Maturity time (T)= 2 year

Formula:

\bold{d1 =\frac{\frac{s}{X}+(r+0.5 \times \sigma^2)\times T}{\sigma \times \sqrt{T}}}\\\\

by solving the given values, we get the d1 value that is "1.38357"

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The management accountant at Jang Manufacturing Co. collected the following data in preparation for a life-cycle analysis on one
crimeas [40]

Complete Question:

The management accountant at Jang Manufacturing Co. collected the following data in preparation for a life-cycle analysis on one of its products, a leaf blower: Item This Year Change Over Last Year Average Annual Change Over the Last Four Years Annual sales $3,200,000 -2.4% +3.5% Unit sales price 500 -2.1% +3.3% Unit profit 100 -10.0% +2.0% Total profit 700,000 -1.2% +3.0% The stage of the sales life cycle the product is in is:

Answer:

Jang Manufacturing Co.

The stage of the sales life cycle the product is in is:

The introduction stage.

Explanation:

a) Life-Cycle Analysis of the Leaf Blower:

Item                                This Year Change   Average Annual Change

                                         Over Last Year       Over the Last Four Years

Annual sales $3,200,000    -2.4%                          +3.5%

Unit sales price         500     -2.1%                          +3.3%

Unit profit                   100   -10.0%                          +2.0%

Total profit         700,000     -1.2%                          +3.0%

b) The sales life cycle is a series of sales steps that the seller takes in order to convert a customer to make a buying decision.  It starts with the introduction stage when the seller creates customer awareness.  At this stage of the sales life cycle, the product can be likened to a potential STAR.  Like Stars with potential, the initial sales efforts can eventually  grow to become successful customer closes.

8 0
3 years ago
The deadweight loss from a tax is likely to be greater with a good that has:
Alona [7]

Answer:

A. -many substitute

Explanation:

Deadweight loss is inefficiency that occurs as a result of taxation. It's the change in production or consumption as a result of tax.

If tax is imposed on a good with many substitutes, the deadweight loss would be greater because consumers can easily shift consumption to another good that is cheaper.

If a good has inelastic supply or demand, the deadweight loss is less because consumers and producers do not change quantity demanded and supplied if prices increase as a result of tax.

I hope my answer helps you.

4 0
3 years ago
When writing an in-depth story about a large drug-manufacturing company, Beth presents the company not as a conglomerate edging
yanalaym [24]

Answer:

Responsible capitalism.

Explanation:

Responsible capitalism occurs when a company is managed in such a way that all stakeholders benefit not only shareholders and top management. The business model promotes philanthropic actions although they are also focused on making profit. Because stakeholders benefit, there is more buy in to the goals of the company and is very sustainable.

Beth is viewing the company as responsible capitalism because they enable towns where they operate attain prosperity.

6 0
3 years ago
The Customer is asking for a forecast for when a specific Feature will be available. Where could Product Management find this in
IrinaK [193]

Incomplete question. Here are the missing options;

a. Program Backlog

b. Roadmap

c. Development Manager

d. System Architecture Designs

Answer:

<u>b. Roadmap</u>

Explanation:

<em>Remember</em>, a typical project/product roadmap details lists of features or feature milestones to be launched in the future.

Hence, by looking carefully looking at the product's roadmap, the product manager can find information about when the specific feature requested by the customer would become available.

6 0
3 years ago
Barter is the exchange of goods and services for goods and services without the use of money. any exchange, with or without the
murzikaleks [220]

Answer:

c. the exchange of goods and services for goods and services without the use of money

Explanation:

Barter the exchange of goods and services for goods and services without the use of a medium of exchange such as money.

In a barter, money doesn't change hands.

An example of a barter- I want a pair of shoes worth $30. I see someone that has the shoes but wants textbooks worth $30. I have these textbooks. I give him the textbooks and he gives me the shoes.

I hope my answer helps you

8 0
3 years ago
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