Answer:
Stock Price is $98.70
Explanation:
given data
exercise price = $100 per share
call price = $25 per share
put price = $17 per share
mature time = 2 years
annual rate of interest = 5%
to find out
What is the stock price today
solution
we will use here Put Call Parity for find out Stock Price that is express as
C + 
= S + P .....................a
we know here that C is call price and r is rate and t is time and S is Stock Price and P is put price
so put all value in equation a
C + = S + P
25 + 
= S + 17
solve it we get
P = $98.70
so Stock Price is $98.70
Trade balance is calculated by subtracting imports from exports. In this case, exports are higher than imports which means we have a favorable trade balance. If imports were more than exports, you would have a negative trade balance.
Answer:
c) the marginal cost of capital
Explanation:
The cost which a company bears to add one dollar / unit of capital is called marginal cost. We know that the company raise funds through different sources which can be debt from banks and stocks (common and preferred). This process of raising capital involves a cost which is termed as marginal cost of capital or the cost required to raise an additional unit of capital.
Answer:
b. your demand for peanut butter increases today.
Explanation:
If the price of a commodity would increase at a later date, consumers would increase demand for the good today. Consumers would be willing to buy as much as they can at the lower price. This would shift the demand curve to the right.
Answer: See explanation
Explanation:
a. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020.
Debit Income Tax Expense $40400
Debit Defered Tax Asset $7070
Credit Income Tax Payable $19190
Credit Defered tax liability $28280
(To record income tax expense and defered tax/liability).
Note that:
Income Tax Expense was gotten as:
= $202,000 × 20%
= $202000 × 0.2
= $40,4000
Income Tax Payable was gotten as:
= $95,950 × 20%
= $95950 × 0.2
= $19,190
2. Prepare the income tax expense section of the income statement for 2020.
Income statement for year ended 31 December 2020
Income before tax = $202000
Less: Income Tax expense - Current = $19190
Less: Income Tax expense - Defered = $21210
Net income = $161600
