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kakasveta [241]
4 years ago
12

A client believes that XYZZ stock has bottomed in price and is ready for a steep rebound. What recommendation would give the cli

ent the smallest profit if this occurs?
Business
1 answer:
san4es73 [151]4 years ago
4 0

Answer:

D) Buy XYZZ stock and sell an XYZZ call

Explanation:

If the buyer is convinced that XYZZ stock has bottomed its price he should buy that stock since it's the cheapest it will get.

If he believes that XYZZ's price will soon rebound, then he should not sell a call option for XYZZ. f he sells a call option then his earnings will be very limited, since the price set at the call option will not be very high.

He should keep XYZZ stock for a while and wait for its price to rebound.

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A loss is when
Illusion [34]

The answer is B revenue is less than expenses

5 0
3 years ago
Read 2 more answers
The break-even in units sold will decrease if there is an increase in: a. unit sales volume. b. total fixed expenses. c. unit va
s2008m [1.1K]

Answer:

d. Selling Price

Explanation:

Break even point is calculated as \frac{Fixed\ cost}{Contribution\ per\ unit}

Thus, break even point in units only in two cases,

  1. Fixed cost is reduced that is decreased,
  2. Contribution per unit is increased.

Now, here the options are

a. Increase in units sales volume is of no relevance as will not impact the fixed cost or contribution per unit.

b. Increase in fixed cost will result in higher break even point, as numerator in the fraction will increase.

c. Increase in unit variable cost will ultimately decrease the contribution thus, it is of no relevance.

d. Increase in selling price will increase the contribution per unit, that is the increase in denominator value in fraction, thus, break even units will decrease.

Correct option is

d. Selling Price

7 0
3 years ago
The Fed buys​ $100 million of bonds from the public and also lowers the reserve requirement r. What will happen to the money​ su
Alenkasestr [34]

Answer:

The correct answer is option A.

Explanation:

When the government buys from the public it will pay them back. So the purchase of $100 million of bonds by the government means $100 million was paid to the public.  

Also, if the reserve requirement is lowered, it means the commercial banks can increase lending.  

Both these actions combined will lead to an increase in the money supply.

3 0
3 years ago
Napoleon owns Napoleon's Construction. He agrees to renovate Mrs. Cernan's bathroom. According to Internal Revenue Service (IRS)
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<em><u>a</u></em><em><u>m</u></em><em><u>m</u></em><em><u>i</u></em><em><u> </u></em><em><u>s</u></em><em><u> </u></em><em><u>f</u></em><em><u>a</u></em><em><u>v</u></em><em><u>o</u></em><em><u>r</u></em><em><u>i</u></em><em><u>t</u></em><em><u>e</u></em><em><u> </u></em><em><u>s</u></em><em><u>p</u></em><em><u>o</u></em><em><u>r</u></em><em><u>t</u></em><em><u> </u></em><em><u>i</u></em><em><u>s</u></em>

<em><u>a</u></em><em><u>_</u></em>

8 0
2 years ago
Carlos transfers property with a tax basis of $500 and a fair market value of $800 to a corporation in exchange for stock with a
12345 [234]

Answer:

c. $550

Explanation:

Property has transfered by Carlos, and at the time of Transfer Carlos basis on the Property is $500.

So, from "Carryover basis" rule:

Corporation Tax basis on Property is = Basis of Carlos + Gain recognised.

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                                                              = $550.

Therefore, The corporation's tax basis in the property received in the exchange is $550

4 0
3 years ago
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