Answer:
The explanation of the terms of the option contract change is below
Explanation:
a. Every call option contract will cover more shares
= 500 × 1.1
= 550
for computing the 1.1 (1 + 10%)
The strike price will be reduced for each share to
= 40 ÷ 1.1
= $36.364
b. Cash dividend would not adjust the terms of the contract but the contract value would decrease if it is an option to call and increase if it is an option to place
c. Each contract call option will cover more shares
= 500 × 4
= 2,000
The strike price will be reduced for each share to 40 ÷ 4
= $10
Answer:
- $17,600
Explanation:
The computation of the net decrease in cash during the month is shown below:
= $40,600 - $17,400 - $30,200 - $2,300 - $8,300
= - $17,600
After calculating the items which are presented in the column 1 represent the net decrease in cash for $17,600 amount.
The net decrease in cash represents an outflow of cash. In this, the chances of loss may be higher than the loss.
Answer:
income - expenses
Explanation:
net income is an entity's income minus all the expenses, taxes etc and net worth is the total wealth own by individual minus expenses.
Answer:
B) $77,350
Explanation:
Gross payroll=$100,000
Social Security taxes =6.20%
6.20/100×$100,000
=0.062×$100,000
=$6,200
Medicare taxes = 1.45%.
1.45/100×$100,000
=0.145×$100,000
=$1,450
federal and state income tax =15%
15/100×$100,000
=0.15×$100,000
=$15,000
Total Withholdings=
$6,200+$1,450+$15,000
=$22,650
Total employee compensation= Gross earnings-total withhold
=$100,000-$22,650
=$77,350
