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3 years ago

True of false: the best measure to use when comparing alternative investments is the amount of the dollar gain or loss.

1 answer:

5 0

That statement is True
In general, using only one measurement in comparing alternative investments is a mistake.
But, if you're only could choose one measurement, the amount of the dollar gain or loss would be the best because it allows you to determine the time needed before you break your investment event and started obtaining profit.

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You own one call option with an exercise price of $30 on Nadia stock. This stock is currently selling for $27.80 a share but is

Shalnov [3]

Answer: 0.755

Explanation:

From the information given, the current per share value of the option if it expires in one year will be calculated as follows:

Firstly, we calculate the present value which will be:

= $28 / ( 1 + 0.05 )

= $28/1.05

= $26.667

The number of options needed will be:

= ( 34 - 28 )/ ( 4-0)

= 6/4

= 1.5

Therefore,

27.80 = (1.5 x Co) + [28 / (1+0.05)]

27.80 = 1.5Co + (28/1.05)

27.80 = 1.5Co + 26.667

1.5Co = 28.0 - 26.667

1.5Co = 1.1333

Co = 0.755

Therefore, the answer is 0.755

5 0

3 years ago

What role do sources play in validating an argument? Are we able to rely on the internet to provide complete and truthful inform

Andrej [43]

Incomplete question. However, I answered from a general research perspective.

Explanation:

What role do sources play in validating an argument?

Well, the term source basically refers to the originator of any information. We have sources that are considered credible sources (like Encyclopedia, Journal Magazine, Newspaper, etc) and others that are considered incredible sources (general social media post). Knowing the kind of source could thus help validate an argument.

Relying on the internet to provide complete and truthful information is difficult considering the amount of fake news available today.

8 0

3 years ago

What is the largest source of revenue in california?

MArishka [77]

The three largest sources of revenue are personal income taxes, sales and use taxes, and corporate income taxes (in that order).

8 0

3 years ago

An engineering firm measures its output in standard service hours (SSH) per unit, which is a function of the skill levels of its

tatyana61 [14]

Answer:

Instructions are below.

Explanation:

Giving the following information:

The variable cost is $60 per SSH and the fixed cost is $2,000,000 per year. The firm charges $100 for each service per hour. Assume the maximum hours the firm operates (that is the output) is 170,000 per year.

1) To calculate the break-even point, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 2,000,000/ (100 - 60)

Break-even point in units= 50,000 hours

2) %of hours= (50,000/170,000)*100= 29.41%

3) Fixed costs= $1,800,000

Break-even point in units= 1,800,000/40

Break-even point in units= 45,000 hours

The number of units required to cover for fixed costs diminished by 10%.

4) Selling price= $110

Break-even point in units= 2,000,000/(110 - 60)

Break-even point in units= 40,000 hours

The number of units required to cover for fixed costs diminished by 20%.

5) In generals terms, it is easier to increase the selling price compared to decreasing fixed costs. In this case, the best option is to increase the selling price. The effect on income and the break-even analysis is higher than decreasing fixed costs.

3 0

3 years ago

"Problem 20-01A a-b, c Carla Vista Sports Inc. manufactures basketballs for the Women’s National Basketball Association (WNBA).

Natali [406]

Answer:

Effect on income= $26,700

Explanation:

Giving the following information:

Producing 118,600 units. Amount Sales $4,506,800 Cost of goods sold 3,475,506 Selling and administrative expenses 498,060 Net income $533,234 Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $249,000. In July, normally a slack manufacturing month, Carla Vista Sports receives a special order for 10,000 basketballs at $28 each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.73 per unit because of shipping costs but would not increase fixed costs and expenses.

Unitary variable cost= (3,475,506 - 960,000)/118,600= $21.2

Unitary variable selling and administrative= (533,234 - 249,000)/118,600= 2.40

New offer:

10,000 units for $28

Total unitary variable cost= (21.2 + 2.4 + 0.73)= $24.33

Effect on income= 10,000*(28 - 24.33)= $26,700

4 0

3 years ago