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3 years ago

How can knowledge of call options help a financial manager to better understand warrants and convertibles

Business

1 answer:

Arlecino [84]3 years ago

4 0

Explanation:

Note that call options are simply contracts or tradable assests that gives owners the right to buy the stock at a certain price. While a financial manager is someone task with managing the assets of an investor in a company.

Knowledge of call options will allow the financial manager to sucessfully work with stocks, warrants (recently issued shares of stock), and convertible securities (such as debts been replaced with common stocks).

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Misty Mountain Shop is considering purchasing a new piece of equipment that would be used for 6 years. The cost savings from the

Allisa [31]

Answer:

NPV = $ 87,592.90

Explanation:

Net present value is calculated by taking the Present Day (discounted) value of all future Net Cash Flow based on the Business Cost of Capital and subtracting the Initial cost of the Investment.

Calculation of Net present value (Financial Calculator)

Period and Cash flow

CF0 = ($900,000)

CF1 = $200,000

CF2 = $200,000

CF3 = $200,000

CF4 = $200,000

CF5 = $200,000

CF6 = $300,000

Cost of Capital = 8%

NPV = $ 87,592.90

8 0

3 years ago

The table below shows the average income of the U.S. total population over age 25, based on level of education. Drag the differe

abruzzese [7]

The differences in average income are $6,080, $6169, $18,219, and $19,151.

The table below organizes income from the one with the lowest education level to the highest one. Moreover, there is a general trend in which income increases with education.

Now, to find the difference in average income based on education it is necessary to subtract the income of a lower level to the income of the next educational level.

Less than Highschool vs. High school graduate:

$31,956 - $25,876 = $6,080

High school graduate vs. some college or Associate's degree:

$38,125 - 31,956 = $6169

Some college or Associate's degree vs. Bachelor's degree:

$56,344 - $38,125 = $18,219

Bachelor's degree vs Profession or Doctorate degree:

$75,495 - $56,344 = $19,151

Learn more about mathematics in: brainly.com/question/12083755

4 0

2 years ago

In order to prevent discrimination against applicants of protected classes, your colleague decides to note the protected class c

Lelechka [254]

It is not a good idea to note the protected class characteristic of the applicants on their applications in order to prevent discrimination against applicants of protected classes because noting the protected class characteristic of the applicant on the application could be interpreted as discriminatory.

3 0

3 years ago

Which of the following statements about Jack's lease agent position is most effective? Multiple Choice learned about the lease p

lesya692 [45]

Answer: Manage all lease agreements (new leases, renewals, subleases, and addendums) for 75 townhome tenants

Explanation:

Jack's lease agent position at Golden Sand Townhomes involved him managing all lease agreements in that he filed new leases, renewals, subleases and addendums.

He also attended to customer requests and was in charge of organising special celebrations for the tenants while also assisting in PR functions by helping management with marketing campaigns.

8 0

3 years ago

When comparing a Variable Rate Demand Obligation (VRDO) to an Auction Rate Security (ARS), which statement is FALSE?

lozanna [386]

Answer:

Both have tender options.

Explanation:

Variable rate demand obligation and Auction rate securities both are long term bonds which have interest rate that reset weekly or monthly. This advantages the issuer with lower short term rates despite of long term security. Both of these securities are subject to credit risk of the issuer and they are marketed by broker dealers.

5 0

3 years ago