Answer:
a. The company must have had net income equal to zero in 2009.
Explanation:
If on its 2008 balance sheet, Sherman Books showed a balance of retained earnings equal to $510 million, and on its 2009 balance sheet, the balance of retained earnings was also equal to $510 million; then what is true is that the company must have had net income equal to zero in 2009.
Retained earnings is the profit amount or net income left over and taken back into the business after it has paid out dividends to its shareholders.
However it is unlikely that the company will pay out the entire amount it earns in a particular year but a percentage of earnings.
In the case of Sherman, it is unlikely that the company made a profit of $200 million and paid out every bit as dividends to shareholders but what is most likely is that there was no profit made for retention in 2009
Answer:
The correct response will be "Paying a premium price
".
Explanation:
- Each consumption has the fundamental economic intention of obtaining products that have the highest possible and the limit requirements at the lowest competitive prices.
- And therefore, satisfied customers frequently ignore that instinct because some other manufacturer is still connected to something like the commodity.
Answer:
O Stands for offer , A stands for acceptance , C stands for consideration , K stands for contract . An offer requirement, a contract and acceptance have it’s own thing.
Explanation:
Answer:
Buy 0.8 shares for each option purchased
Explanation:
Calculation to determine What is necessary to hedge the position
Using this formula
N=Vu-Vd/U-D
U = stock price in case of an up move = $36
D = stock price in case of an down move = $26
VU = put option value if stock goes up = $0
VU = put option value if stock goes down = $32 - $26 = $6
Using this formula
N=
−
V
U
−
V
D
U
−
D
N
=
−
0
−
6
36
−
26
N
Now let calculate What is necessary to hedge the position
Value =74 x + 6
Hence,
90x=74x + 6,
x=6/(90-74)
x=6/16
x=.375
