Answer:
50%
Explanation:
The computation of the probability for put option will be exercised is shown below:
She will exercise at the time when the exercise price i.e $.50 is bigger than the future spot price i.e (20% + 30% = 50%)
So in this case the probability should be 50%
Hence, the correct answer is option c.
All other information which is given is not relevant. Hence, ignored it
Answer:
The price elasticity of supply is 1.22
Explanation:
Please refer to the attached file
Answer is A. Debt. Or possibly revenue
Answer:
The average collection period for accounts receivable in 9. 1 or 9 days
Explanation:
The average collection period for accounts receivable in days is computed as using the formula:
Average collection period for accounts receivable = 365 / Accounts Receivable Turnover Ratio
Computing Accounts Receivable Turnover Ratio as:
Accounts Receivable Turnover Ratio = Net Sales / Average Net Accounts Receivable
where
Net sales is $500,000
Average Net Accounts Receivable is as:
Average Net Accounts Receivable = Beginning Accounts Receivable + Ending Accounts Receivable / 2
= $10,000 + $15,000 / 2
= $25,000 / 2
= $12,500
Putting the values above:
= 500,000/12,500
Accounts Receivable Turnover Ratio = 40
Now, putting the values above in the formula of Average collection period of Accounts Receivable:
= 365 / 40
Average collection period of Accounts Receivable = 9.1 days or 9 days
Answer:
Loss in purchasing power =$(96.67)
Explanation:
To determine the change in purchasing power, we will compare the value of the IRA after 3 years to its purchasing power in term the prices there years ago.
The value of 5,500 in 3 years time = 5,500 × 1.012^3 = 5700.385
The purchasing power of 57,000.38 in term's of the price 3 years ago
=5700.385504
× 1/(1.018^3)
= $5403.32
Change in purchasing power = $5403.32 - $5,500= $(96.67)
Loss in purchasing power =$(96.67)
