Answer:
$65
Explanation:
The calculation of the break even price for this position is given elow:
Break even price is
= Strike price - premium
= $70 - $5
= $65
The stock goes increase i.e. upwards to $65 so the amount that lose is only $5 but it declines than the stock would be $0
Therefore, the break even price of this position is $65
So, by using the above formula we can get the break even price and the same is to be considered
Answer:
$405,458
Explanation:
Date of acquisition - 01/04/2015
Date of disposal - 01/05/2018
Time line - 3years 1 month
Useful life - 5years
Salvage value - $68000
Depreciation method - Straight line
Cost of Asset - $725,000
Annual Depreciation = (725000-68000)/5 =657,000/5 = 131500
Accumulated depreciation = (131500*3) + 131500/12
$394,500+10,958
Answer:
C) elastic
Explanation:
Usually the price elasticity of demand for luxury products is very elastic, that means that for every 1% that the product increases its price, its quantity demanded will decrease in a higher proportion (more than 1%).
In this case, since Chantel increased the price of her rose gold bracelets, her sales decreased. We are not told how much they decreased, but we can assume by the type of product that the decrease was severe.
Answer:
8.3%
Explanation:
Real risk - free rate of interest ( k* ) = 4%
Inflation for next four ( 4 ) years = 2% per year
Inflation rate after four years = 5%
maturity risk premium = 0.1 ( t - 1 )%
<u>Determine Yield on a 10-year Treasury bond </u>
t = bond's maturity
Yield = Real risk - free rate + maturity risk premium + inflation rate
Inflation rate for 10 years = ( 4 + 30 ) / 10 ) % = 3.4%
Yield = 4% + 0.1(10- 1)% + 3.4
= 4% + 0.9% + 3.4%
= 8.3%
Answer:
(C) Brown could seek an injunction against Watkins, on the basis of nuisance
Explanation:
The bugs and pests from Watkins grass clipping pile are a menace to his neighbour Brown.
Brown has tried extermination but the source of the problem, which is still there, makes his efforts futile.
Brown now has the right to seek an injunction - a court order controlling or restricting a person's behaviour - against Watkins on the basis of nuisance.
Watkins should comply