Answer:
Effect on income= 7,500 increase
Explanation:
Giving the following information:
Variable costs are $0.50 per unit.
Current monthly sales are 183,000 units.
Heaven Company has contacted Marx Company about purchasing 15,000 units at $1.00 each.
Because it is a special offer and there is unused capacity, we will not take into account the fixed costs.
Sales= 15,000*1= 15,000
Variable cost= 15,000*0.5= (7,500)
Effect on income= 7,500 increase
Answer:
The firm's unleveraged beta is 1.0251
Explanation:
Hamada's equation is used to separate the financial risk of a levered firm from its business risk.
The Hamada equation:
Bu= Bl/(1 + (1 − T)(D/E))
Bl = 1.4
wd = 0.36
Tax rate = 35%
D/E = wd / (1 – wd) = 0.5625 = 56.25%
= 1.4/ (1+(1-0.35)(0.5625))
=1.4/ 1 + (0.65)(0.5625)
=1.4/1.36
= 1.0251
The statement that holds true for the American Option is (A) Put-call parity provides an upper and lower bound for the difference between call and put prices
Explanation:
According to the Put-call parity concept when we hold the short European put and long European call of similar class the return delivered is same as holding one forward contract of the same underlying asset, that has the same expiration, forward price and which is equal to the strike price of the option
In financial management put–call parity concept is used to define the relationship that exist between the price of a European call option and European put option, and both of them have identical strike price and expiry
The formula used for calculating put call parity is
c + k = f +p
where (c) call price plus the (k) strike price of both options is equal to the futures price(f) plus the put price(p)
Answer:
d. $248,000
Explanation:
beginning cash balance 27,000
operating activities 351,000
investing activities (420,000)
financing 250,000
cash generate during the year 181,000
ending cash balance 208,000
<u>Note:</u>
The information of the sale of land is contained with the investment activities.
The proceeds from sales are in the operating activities.
<u>We just need to calculate using the total for each activity.</u>
Answer:
C. State of being alone or with another person
Explanation:
In the whole scenario, the independent variable is state of being alone or with another person.