Answer:
$29,850
Explanation:
The computation of the increase in net operating income is shown below:
= Increase in sales - increase in variable expenses - advertising cost
where,
Increase in sales = $89,000
Increase in variable expenses is
= $89,000 × 35%
= $31,150
And, the advertising cost is $28,000
So, the increase in operating income is
= $89,000 - $31,150 - $28,000
= $29,850
Answer: FALSE
Explanation: Innovations is the term used to refer to the invention or creation of new things,new ideas,new ways to solving the problems of man or to understand things or issues.
The rate of Innovation after the restoration of the Gospel is more and better now when compared to the days prior to the restoration of the Gospel. People now understand the Gospels with better knowledge,the interpretation is good and correct now.
Answer: Marginal propensity to consume = $0.60
Spending multiplier = $2.5
Explanation: The MPC can be calculated using following equation :-
![MPC=\frac{change\:in\:consumption}{change\:in\:spending}](https://tex.z-dn.net/?f=MPC%3D%5Cfrac%7Bchange%5C%3Ain%5C%3Aconsumption%7D%7Bchange%5C%3Ain%5C%3Aspending%7D)
![MPC=\frac{\$0.60}{\$1}](https://tex.z-dn.net/?f=MPC%3D%5Cfrac%7B%5C%240.60%7D%7B%5C%241%7D)
= 0.60
Similarly, we can calculate spending multiplier as :-
![Spending\:multiplier\:=\:\frac{1}{1-MPC}](https://tex.z-dn.net/?f=Spending%5C%3Amultiplier%5C%3A%3D%5C%3A%5Cfrac%7B1%7D%7B1-MPC%7D)
![Spending\:multiplier\:=\:\frac{1}{1-0.60}](https://tex.z-dn.net/?f=Spending%5C%3Amultiplier%5C%3A%3D%5C%3A%5Cfrac%7B1%7D%7B1-0.60%7D)
= $2.5
Answer:
Short 1.5 shares
Explanation:
Given data :
Risk free rate = 3%
current price ( market price ) = $25
Delta of 1-year at money European call on MCD = 0.5
<u>Determine how many shares of MCD John should either Long or short to achieve a delta-neutral </u>
use the relation below
4 * 0.5 + 1 ( 0.5 - 1 ) + x = 0
x ( number of shares ) = - [ 4 * 0.5 + 1 ( 0.5 - 1 ) ]
= - 1.5 shares
negative ( - ) means MCD should short 1.5 shares
If this is a multiple choice the answer is the option about the tree branch breaking your bedroom window...hope this helps:)