Answer:
$1,300
Explanation:
Calculation to determine what the market maker’s net profit from Brent’s transaction
First step is to calculate the bid-ask spread using this formula
Bid-ask spread=Ask price-Bid price
Let plug in the formula
Bid-ask spread=$31.80-$30.50
Bid-ask spread=$1.30
Now let calculate the Net profit
Using this formula
Net profit=Bid-ask spread*Shares resell
Net profit=$1.3 x 1000 shares
Net profit=$1,300
Therefore the market maker’s net profit from Brent’s transaction will be $1,300
Answer:
The false statement is letter "C": A stock buyback refers to the purchase of the firm's shares of stock by the firm's debt holders.
Explanation:
A stock buyback refers to <em>publicly traded companies buying back their shares from shareholders</em> -not debt holders as in option "C". This reduces the number of outstanding shares in the market and typically in simple market dynamics raises the stock price. Companies fund their buybacks with excess cash. since they do not find any other better destination for that money.
Corporate dividends are always paid in cash is not true among the given statements.
<u>Explanation:</u>
Corporates dividends are not always paid in cash sometimes they are paid in merchandise or as other assets. Dividends are earnings which corporations distribute to its stockholders and they are charge against the profit which the corporation generated over the specified period.
They are charged on the stock which is owned by all the shareholders/stockholders or other investors. The period which dividends are paid differs from one corporation to another. Some companies pay annually while others opt for quarterly payments or pay after 3 months.
Answer:
c.154
Explanation:
In a safety stock problem where both demand and lead time are variable, demand averages 150 units per day with a daily standard deviation of 16, and lead time averages 5 days with a standard deviation of 1 day. The standard deviation of demand during lead time is approximately: 154 units
P= percent change
The new number is lower than the original, so we need to use a % decrease formula.
P=[(original#-new#) ÷ original #] x 100
P= [(29.77-28.35)/29.77] x 100
P= (1.42/29.77) x 100
P= 0.047747 x 100
P= 4.77% decrease
Hope this helps! :)
