Answer:
$133.33
Explanation:
Calculation for The intrinsic value of the stock
Intrinsic value of the stock = 6% + [−0.25(14% − 6%)] = .04
Intrinsic value of the stock = 8/[.04 − (−.02)]
Intrinsic value of the stock = 8/.06
Intrinsic value of the stock = $133.33
Therefore the intrinsic value of the stock is $133.33
Answer:
$2,000
Explanation:
Data provided in the question
Number of shares purchased = 100 shares
Price of common stock = $25
Given percentage = 50%
Based on the above information, there is no borrowing taken place in a margin account because there is a minimum requirement to maintain $2,000 in equity and when the purchase is made lower than $2,000 so it is important to pay the amount in full and the deposits are important when it is made more than $2,000 in the case when the trade is more than $4,000
Answer:
$5,000 favorable
Explanation:
The computation of the total variable overhead variance is given below:
= Budgeted machine hours allowed for actual output × Budgeted variable overhead rate per machine hour - Actual total variable overhead
= 32,000 hours × $2.50 - $75,000
= $80,000 - $75,000
= $5,000 favorable
Since the favorable is more than the actual so it should be favorable
Answer:
The $300 of out of pocket expense exceeds the MSRB political contribution limit and will result in the municipal securities firm being banned as an underwriter for that issuer for 2 years.
Explanation:
The municipal securities firm is is underwriter for municipal issuer. The volunteers have paid $300 out of pocket but they are not entitled to make contribution to the campaign. This will result the firm being banned for two years as an underwriter for the issuer.
