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Eva8 [605]
3 years ago
7

Financial data for Joel de Paris, Inc., for last year follow:

Business
1 answer:
suter [353]3 years ago
5 0

Answer:

profit margin: 7.09%

<u />

<u>Turnover: </u>

Assets : 1.85

Account Receivable: 11.53

Inventory: 9.05

ROI: 28.94%

2.- residual income 91,395

Explanation:

sales 4,700,000

net income 333,000

<u>profit margin:</u>

net income / sales

333,000 / 4,700,000 = 0,070851 = 7.09%

<u>Turnovers:</u>

Will be sales over an asset account to calcualte how many times  the assets converts to cash or rotate.

the average will be calcualte as (beginning + ending)/2

<em>Assets turnover:</em>

sales/average assets

sales 4,700,000

(2,505,000 + 2,585,000) / 2 = 2,545,000

Ratio: 1,8467 = 1.85

<em>Account Receivable Turnover:</em>

sales/ average turnover

sales 4,700,000

(344,000 +471,000)/2 = 407,500

Ratio: 11,5337 = 11.53

<em>Inventory Turnover</em>

Sales/ average inventory

Sales 4,700,000

(568,000 + 471,000)/2 = 519,500

Inventory turnover: 9,04716 = 9.05

<u>ROI</u>

net income / average equity

<u>where:</u>

average equity : (beginning + ending)/2

1,092,000 + 1,209,000 = 1,150,500

333,000/1,150,500 = 0,28943

<u></u>

<u>Residual income:</u>

net income - Equity x expected return

    333,000 - 1,150,500 x 0.21 =

     333,000  -  241,605‬  = 91,395

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In the short run, if average variable cost equals $50, average total cost equals $75, and output equals 100, the total fixed cos
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From the question,

Average variable cost(AVC) = $50

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Since Average fixed cost is the difference between the average total cost and the average Variable cost. This will be:

AFC = ATC - AVC

AFC = $75 - $50

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We should note that:

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An unexpected frost in the orange groves of California would causea. a decrease in the supply of orange juice, increasing the eq
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Answer:

The correct answer is option a.

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You are attempting to value a call option with an exercise price of $100 and one year to expiration. The underlying stock pays n
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$13.64

Explanation:

Given:

Exercise price,X = $100

Current price = $100

Value when price is up, uS = $120

Value when price is down, dS= $80

Risk free interest rate = 10%

First calculate hedge ratio, H:

H = \frac{C_u - C_d}{uS - dS}

Where,

Cu = uS - X

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= $20

H = \frac{20 - 0}{120 - 80} = \ftac{1}{2}

A risk free portfolio involves one share and two call options.

Find cost of portfolio:

Cost of portfolio = Cost of stock - Cost of the two cells.

= $100 - 2C

This portfolio is risk free. The table below shows that

_______________

Portforlio 1:

Buy 1 share $80; Write 2 calls: $0; Total: ($80 + 0) $80

____________________

Portforlio 2:

Buy 1 share: $120; Write 2 calls: -$40; Total: ($120 - $40) $80

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Present value = \frac{80}{1 + 0.10} = 72.73

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Call option's value = $13.64

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