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4 years ago

What isn't not a stock derivative

1 answer:

7 0

A derivative is a contract between two or more parties whose value is based on an agreed-upon underlying financial asset, index, or security. ... Similarly, a stockoption is a derivative because its value is "derived" from that of the underlyingstock.

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You have just won the state lottery and have two choices for collecting your winnings. You can collect $100,000 today or receive

WINSTONCH [101]

Answer:

The present value Option 1 = $100,000

The present value Option 2 =$97.368,57‬

Explanation:

The formula to calculate Present Values is equal to:

Present Value = FV / (1+r) ∧n

Let´s calculate Present Value for Option 2:

PV1 = $20,000 / (1+0,10) ∧ 1= $18,181.82

PV2 = $20,000 / (1+0,10) ∧ 2= $16,528.92

PV3 = $20,000 / (1+0,10) ∧ 3= $15,026.29

PV4 = $20,000 / (1+0,10) ∧ 4= $13,660.26

PV5 = $20,000 / (1+0,10) ∧ 5= $12,418.42

PV6 = $20,000 / (1+0,10) ∧ 6= $11,289.47

PV7 = $20,000 / (1+0,10) ∧ 7= $10,263.16

PV1 + PV2 +PV3 +PV4 + PV5 + PV6 + PV7 = $97.368,57‬

3 0

3 years ago

A smartphone manufacturing company uses social media to achieve different business objectives. Match each social media activity

bekas [8.4K]

Explanation:

Following is the correct matching of different social media activities with the objectives of the company.

Releases videos of its new, high tech smartphone manufacturing facility

To give consumers a peek into its operations

Hosts an online sweepstakes and gives the winners an extended warranty on a smartphone model

To increase brand loyalty

Gives bloggers a new smartphone handset before the model is on the market

To create consumer awareness about a new product

Ask customers to determine their next model using hashtag #NEWMODEL

To allow consumers to be part of product development

5 0

4 years ago

Read 2 more answers

Pina Colada Corp. has the following transactions during August of the current year.

const2013 [10]

Answer and Explanation:

The indication of the basic analysis and the debit credit analysis is as follows;

Date Basic Analysis Debit - Credit Analysis

Aug. 1 The asset Cash is increased; Debits increase assets;

the stockholders' equity account Debit Cash

Common stock is increased. $10,880

Credits increase stockholders' equity

Credit Common stock

$10,880

Aug. 4 The asset Prepaid Insurance Debits increase assets;

is increased; Debit Prepaid Insurance

the asset Cash is decreased. $ 1,500

Credits decrease assets;

Credit Cash

$ 1,500

Aug. 16 The asset Cash is increased; Debits increase assets;

the revenue Service revenue Debit Cash

is increased. $880

Credits increase revenues:

Credit Service revenue

$880

Aug. 27 The expense Salaries expense Debits increase expenses:

is increased; Debit Salaries expense

the asset Cash is decreased. $680.

Credits decrease assets:

Credit Cash

$680

3 0

3 years ago

One of the authors wanted to determine the effect of changing answers on multiple-choice tests. she studied the tests given by

Vilka [71]

Ye she’s yensjshiahahs

4 0

4 years ago

Read 2 more answers

Ambiguity can arise as to whether receivables have been sold or instead are being used as collateral for a loan whenever certain

victus00 [196]

Answer:

is whether the transferor surrenders control over the receivables

Explanation:

In Sales of Receivables and Collateralized Borrowing,.companies do not want to wait for payments to arrive as they simply quickens cash collection with help of bank or financing company and also factoring and collateralized borrowings are various means to speed up cash collections. In Collateralized borrowing, receivables are simply collateral. Company gets cash from bank and is saddle with the responsibility for repaying loan.

Issues regarding collateralized borrowing are the sales of receivables had the purchaser is called a factor, borrowing using receivables as collateral and accounts receivable is not wipe off from seller's books.

6 0

3 years ago