Answer:
b. it is expensive and requires a great deal of effort.
Explanation:
selling on credit is basically lending money to customers and it can be very expensive for a small business. First of all, the risk of not getting paid always exists. Second, a small business doesn't generally have excess cash in order to finance credit sales. This means that you might probably need to borrow money yourself to finance your customers.
The good side of credit sales is that they might help you increase your total sales. But you have to calculate which is higher, the costs or the benefits.
The interest rate offered would decrease
Answer:
Firm J's margin= 8.3%
Firm J's turnover= 2
Firm J's ROI= 16.6%
Explanation:
Form J has a net income of $77,605
The sales is $935,000
The average total assets is $467,500
Firm J's margin can be calculated as follows
Margin= Net income/sales
= $77,605/$935,000
= 0.083×100
= 8.3%
Firm J's turnover can be calculated as follows
Turnover= Sales/Average Total assets
= $935,000/$467,500
= 2
Firm J's return on investment can be calculated as follows
ROI= Net income/Average Total assets
= $77,605/$467,500
= 0.166×100
= 16.6%
Hence Firm J's margin, turnover and return on investment is 8.3%, 2 and 16.6% respectively.
Answer:
IP is protected in law by, for example, patents, copyright and trademarks, which enable people to earn recognition or financial benefit from what they invent or create.
Explanation:
Answer:
The price of put option is $2.51
Explanation:
The relation between the European Put option and Call option is called the Put-Call parity. Put-Call parity will be employed to solve the question
According to Put-Call parity, P = c - Sо + Ke^(-n) + D. Where P=Put Option price, C=Value of one European call option share. Sо = Underlying stock price, D=Dividend, r=risk free rate, t = maturity period
Value of one European call option share = $2
Underlying stock price = $29
Dividend = $0.50
Risk free rate = 10%
Maturity period = 6 month & 2 month, 5 month when expecting dividend
P = c - Sо + Ke^(-n) + D
P = $2 - $29 + [$30 * e^[-0.10*(6/12)] + [$0.50*e^(-0.10*(2/12) + $0.50*e^(-0.10*(5/12)]
P = $2 - $29+($30*0.951229) + ($0.50*0.983471 + $0.50*0.959189)
P = -$27 + $28.5369 + $0.4917 + $0.4796
P = $2.5082
P = $2.51
Therefore, the price of put option is $2.51
