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3 years ago

What isn't not a stock derivative

1 answer:

7 0

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

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In an operating lease, a sale is not recorded by the lessor. Instead, the periodic lease payments are accounted for as rent reve

yaroslaw [1]

Answer:

-The lessee reports a single amount of lease expense, which is equal to interest expense plus amortization expense, in its income statement.

-The lessor reports a single amount of lease revenue, which is equal to interest revenue plus amortization revenue, in its income statement.

-The lessee reports lease expense on a straight-line basis and the lessor reports lease revenue on a straight-line basis over the lease term.

Explanation:

The mode of reporting in an operating lease is slightly different from that in a finance lease. For example, the lessor can use a straight-line form of reporting he revenue while the lessee can use a straight-line form of reporting the expense for the given term of the lease. The lessee and lessor usually report expense and revenue respectively.

5 0

3 years ago

Look at the sales prices change that is being suggested. In particular, Winetki talks about one of the product's prices as doubl

PilotLPTM [1.2K]

The calculation of a revised break-even point in units for the firm as a whole, using the weighted-average contribution margin approach is 1,155,556 units.

<h3>What is the weighted-average contribution margin?</h3>

The weighted-average contribution margin shows the average amount that a group of products or services contribute to meet the fixed costs.

The weighted-average contribution margin can be computed as Aggregate sales - Aggregate variable expenses) ÷ Number of units sold.

<h3>Data and Calculations:</h3>

Aggregate sales revenue = $1,800,000

Aggregate variable costs = $1,125,000

Aggregate contribution margin = $675,000 ($1,800,000 - $1,125,000)

Total units sold = 1,500,000

Total fixed costs = $520,000

Weighted average contribution margin = $0.45 ($675,000/1,500,000)

Break-even point in units = 1,155,556 units ($520,000/$0.45)

Thus, the calculation of a revised break-even point in units for the firm as a whole, using the weighted-average contribution margin approach is 1,155,556 units.

Learn more about break-even analysis at brainly.com/question/21137380

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4 0

1 year ago

financial calculator Bruno's Lunch Counter is expanding and expects operating cash flows of $23,900 a year for 5 years as a resu

Ann [662]

Answer:

NPV = 138,347.55

Explanation:

<em>Net Present Value (NPV) : This is one of the techniques available to evaluate the feasibility of an investment project. The NPV of a project is the difference between the present value of the cash inflows and the cash outflows of the project.</em>

We sahall compute theNPV of this project by discounting the appropriate cash flows as follows:

<em>Prevent Value of operating cash flow</em>

PV =A× (1- (1+r)^(-n))/r

A- 23,900, r - 12%, n- 5

PV = $23,900 × (1- (1.12)^(-5))/0.05

=206,769.963

<em>PV of Working Capital recouped</em>

PV = 5600× 1.12^(-5)

= 3,177.59

NPV = initial cost + working capital + Present Value of working capital recouped + PV of operating cash inflow

NPV = (66,000) + (5600) + 3,177.59 + 206,769.96

NPV = 138,347.55

5 0

3 years ago

hums 202 Which of the following describes a consumer installment loan? A. A loan you get based on the tax refund that you expect

umka2103 [35]

Answer:

B. A loan that is repaid in equal monthly payments for a specific period of time, usually several years.

C. A loan where you have to promise to give the bank your assets if you do not repay the loan.

Explanation:

A Consumer installment loan is also known as a closed end credit. It is a form of loan whereby the consumers are expected to pay back in a regular manner usually monthly over a period of time which could span between one to about forty years.

The loan is given based on how credit worthy the consumer is. Failure to pay back the loan after the stipulated time frame would result to the seizure of the consumer's property or assets by the lending institution. The lending institution could be a bank. A mortgage loan, and a car loan are examples of consumer installment loans.

6 0

3 years ago

Driving at slower speeds than traffic flow _____________ .

blagie [28]

Definitely both B and C

7 0

3 years ago