Answer:
salvage value is $16,368.34
Explanation:
given data
initial cost = $182,730
annualized capital cost = $42,442
service life = 7 year
interest rate = 15%
solution
we get here first present value that is
annual value = rate × 
.................1
put here value and we get
42,442 = 15% × 
solve it we get
present value = $176,576.5343
so
present value = initial investment + salvage value ..............2
we take here present value and initial investment will be negative
-176,576.5343 = -182,730 + salvage value(p/f,15%,7)
-176,576.5343 +182,730 = salvage value(p/f,15%,7)
6,153.465 = salvage value × 0.3759
salvage value = 16,368.34
Answer:
A. Quantitative perspective
Explanation:
Roger using the capital asset pricing model and other mathematical tools to track finances is focused on quantitative perspective.
He is relying more in the figures to assist his clients.
Quantitative methods are characterised by use of statistics, mathematics, analysis and formation of logical models. Decisions are made on the final result.
Stock;
coupon
face
bonds;
closing
maturity
Population - 50,000
Employed - 45,000
Students not looking for work - 1,000
To calculate Boone's unemployment rate you'll use the formula:
Unemployment rate = number of people unemployed / labor force
Those that fall into the unemployment category are those that are not working but are actively looking/wanting to work. Students, stay-at-home moms etc that are not wanting to work, though unemployed, to not fall into this category.
The labor force is made up of everyone willing and able to work.
First, let's subtract the students who are not looking for work from the population so get the labor force. 50,000 - 1,000 = 49,000 (labor force)
Next, to get the number of people unemployed let us subtract the labor force of 49,000 by those already employed of 45,000. 49,000 - 45,000 = 4,000
Finally, we are able to calculate the unemployment rate of Boone.
Unemployment rate = number of people unemployed / labor force
Unemployment rate = 4,000/49,000= .081 multiply by 100 to get the percentage. 8.1%
Unemployment rate of Boone is 8.1%
Answer: b. The put price decreases to $3.50
Explanation:
Put - Call Parity refers to the relationship that a certain European Put has with a European Call of the same underlying asset, strike price, and expiration date.
If Put - Call Clarity holds then the options and the calls should move together when Volatility changes all else being equal.
In the above scenario, the price of the call DROPPED by $0.5 to $2.50.
This means that the Put Price must DROP AS WELL by $0.5 to $3.50 to maintain the Parity.
