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Aleks [24]
3 years ago
12

You own a lot in Key West, Florida, that is currently unused. Similar lots have recently sold for $1,260,000. Over the past five

years, the price of land in the area has increased 8 percent per year, with an annual standard deviation of 37 percent. You have approached a buyer and would like the option to sell the land in 12 months for $1,410,000. The risk-free rate of interest is 4 percent per year, compounded continuously. What is the price of the put option necessary to guarantee your sales price

Business
1 answer:
Kamila [148]3 years ago
7 0

Answer:

Explanation:

find the solution below

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Corporate triple A bond interest rates for 12 consecutive months are as follows:
pashok25 [27]

Answer and Explanation:

The answer is attached below

5 0
4 years ago
In a statement of cash flows, which of the following would be classified as an investing activity?
Elanso [62]

Answer:

C. The sale of equipment.

Explanation:

Investing activities: It records those activities that include the long-term asset buying and selling. The buying is a cash outflow while the sale is a cash inflow.

The cash outflow decreases the cash balance whereas cash inflow increases the cash balance. So the buying would be shown in a negative sign while the selling is shown in the positive sign

Hence, the correct option is C.

5 0
3 years ago
g The company plans a 4-for-1 stock split. How many shares will you own and what will the share price be after the stock split?
Nata [24]

Answer: 14,400; $17

Explanation:

Stock splits are a strategy by firms to increase the liquidity of their shares especially when they are trading at a high price. The firm divides the stock by a certain number thus increasing the number of shares by the multiple of the number. This action will divide the price of the stock and thus allow for more trade as they are cheaper.

A 4-for- stock split means that each share will become 4.

Your total number of share will become;

= 4 * 3,600

= 14,400 shares

The new price will be;

= 68/4

= $17 per share

7 0
3 years ago
What are the different elements of working capital and explain actions that Management of a business entity might take to reduce
faltersainse [42]

The different elements of working capital are <u>current current asset and current liabilities</u>. The management of a business entity might take <u>ratio analysis</u> to reduce the cycle.

Working capital management assists in sustaining the smooth operation of the net operating cycle, otherwise called the cash conversion cycle.

<h3>What is working capital management?</h3>

Working capital management is a business strategy formulated to ensure that an organisation functions efficiently by overseeing and utilizing its current assets and liabilities to their most effective use.

Therefore, learn more about working capital management: brainly.com/question/28287025

#SPJ1

4 0
1 year ago
Calculate the average growth rate. (Enter your answer as a percentage, rounded to 2 decimal places, using intermediate calculati
KIM [24]

Answer:

Growth rate is 6%

Explanation:

Po = \frac{D1}{r-g}

P  = 0.3 / (0.1 - 0.06)

P =  $75

Dividend growth model is used to calculate the stock price based on the dividend growth.

6 0
2 years ago
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