Answer:
$75.01
Explanation:
Given:
- Call price (C): $4
- Put price (P): $2.5
- risk-free rate (r): 2% = 0.02
- Time: 1 year
- Exercise price (K): $75
Let Share price: 
As per put-call party, we have the following equation:
- C + K
= P+
<=> = C + K - P
<=> = 4 + 75*
- 2.5
<=> = 1.5 + 73.51 = $75.01
So the the stock price is $75.01
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Answer:
C. lower, higher
The reason for this is that when growth rates are lower investors will be willing to pay less for the stock is because low growth rate mean that the capital gains will be less as stock price is less likely to increase in the future and dividend growth is also less. Also the DDM model D*(1+G)/1-R shows that mathematically a lower growth rate would mean lower stock price
Also Higher required returns mean that the investor requires higher returns to buy the stock, because he may view the stock as risky and requires higher returns for the risk he is taking or he may have a higher opportunity cost (for eg interest rates may be high) with other investments. Mathematically the DDM model D*(1+G)/R-G shows us that a higher R would mean lower stock price.
Explanation:
Answer:
See below
Explanation:
The above is an incomplete question. However, the below is a similar question to complement it.
Balance July 1, $55,678
Deposits $179,500
Checks processed ($192,610)
Service charges ($30)
NSF checks ($1,200)
Monthly loan repayment deducted directly by the banks from account includes ($320) in interest. ($3,320)
With regards to the above, the corrected cash balance is computer as;
Balance per books
$7,300
Less:
Error in recording receipts ($53 - $35)
($18)
Less;
NSF charges
($1,200)
Less:
Automatic monthly loan payment
($3,320)
Less:
Service charge
($30)
Corrected cash balance
$2,732
Answer and Explanation:
The journal entry is shown below:
Jen Rogers, Capital $35,000
To Jen Rogers, Withdrawals $35,000
(Being withdrawals entry is recorded)
Here the Jen Rogers, Capital is debited as it decreased the stockholder equity while the Jen Rogers, Withdrawals is credited as it also decreased the drawings account. Also, the capital contains normal credit balance while drawings contains normal debit balance
