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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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aner, Harris & Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm ha
NeX [460]

Answer:

1. $ 136,500

2. $70000

3. Medical market

Explanation:

1. Calculation to determine How much would the company's profits increase (decrease) if it implemented the advertising campaign in the MEDICAL MARKET

First is to calculate the sales

Sales = (400 000 + 70 000)

Sales = $470 000

Second step is to calculate the profit

Variable cost =$470 000 *65%

Variable cost=$305 500

Contribution =$470 000*35%

Contribution =$164,500

Fixed Expense= $28 000

Profit = $ 136,500

Now let calculate the Difference made by advertisement

Difference = 136500 - 120000

Difference=16500

2. Calculation to determine How much would the company's profits increase (decrease) if it implemented the advertising campaign in the

DENTAL MARKET

vcr Of The Dental market = 50%

Variable cost =50% $260 000

Variable cost = $130 000

Contribution = $130 000

Fixed expenses = $60 000

Profit = $70000

Now let determine difference made by the advertisement

Difference =(70000) - 48000

Difference= 22000

3. Based On the above calculation the markets I would recommend that the company focus its advertising campaign is medical market

8 0
2 years ago
Employees at Brazil-based company Seneco are permitted to control their work hours, location, and even pay plans. Employees also
kogti [31]

Answer:

Empowered

Explanation:

In the given scenario employees in Seneco have the freedom of controlling their work hours, location, and even pay plans. Employees also participate in all organization decisions, including what businesses Senco should pursue.

This is a form of employee empowerment.

Employee empowerment is the act of giving an employee autonomy in decision making regarding their welfare and activities affecting the organisation.

Employees are more involved in decisions affecting their work. This fosters a sense of commitment to the business.

6 0
3 years ago
Youngstown Glass Company manufactures three types of safety plate glass: large, medium, and small. All three products have high
Ann [662]

Answer:

                                                           Large    Medium    Small

Unit selling price                                 $184      $160       $100

Unit variable cost                                  130        120          76

Unit contribution margin                     $54        $40        $24

Autoclave hours per unit                       3            2              1

Total process hours per unit                 5            4              2

Budgeted units of production           3,000     3,000    3,000

a. Determine the contribution margin by glass type and the total company income from operations for the budgeted units of production.

  • total contribution margin for large safety plate glasses = $54 x 3,000 = $162,000
  • total contribution margin for medium safety plate glasses = $40 x 3,000 = $120,000
  • total contribution margin for small safety plate glasses = $24 x 3,000 = $72,000

b. Prepare an analysis showing which product is the most profitable per bottleneck hour.

contribution margin per autoclave hour:

  • large safety plate = $54 / 3 = $18 per autoclave hour
  • medium safety plate = $40 / 2 = $20 per autoclave hour
  • small safety plate = $24 / 1 = $24 per autoclave hour ⇒ MOST PROFITABLE PRODUCT PER AUTOCLAVE HOUR (BOTTLENECK)

7 0
2 years ago
Which of the following is NOT one of the managerial considerations in determining how to compete successfully? How should a comp
hodyreva [135]

Answer:

 Strategy of company concerns are explained as the action plan management,and organisational objectives.

Explanation:      

A.  A more appealing product needs to be offered to rivals for new product.

B. planning of money.

C.  action plan for management function for achieving superior profitability.

D. The company should pursue, the long-term direction management.

E. conservative defense to project

    The action plan management of the company is taking to:

A.  role out a market position,  to attract and satisfy customers, successfully,

perform the operations, and achieve all objectives.

B. conduct a sustainable competitive method and compete against rivals.

C. make your product offering more different and appealing for buyers.

D. conduct the operations.

Organizational objectives are achieved by the following methods:

A. strategic intent

B. statement of the mission.

C. plan of action.

D. business module.

E. strategic vision.

The objectives requires well groomed management to strive to:

A. match your rival businesses products and quality dimensions.

B. short-term success and build profit.

C. realignment in the market.

D. developing lasting success.

E. re-create the bussiness models.

To improve performance, for different avenues:

A. lowering the operating profit margins than rivals to drive sales

growth.

B. achieving analogous of the products.

C. pursing similar personalized customer service or quality dimensions as rivals.

D. Confination of operations to the markets.

4 0
3 years ago
Why do u make us pay have the help we need
dezoksy [38]

Answer:

yeah right

Explanation:

8 0
3 years ago
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