Answer:
The put payoff = $1,072 - $1,050 = $22 per share
Explanation:
The put payoff is simply the difference between the spot price and the exercise price.
To determine the real profit obtained in this transaction we would need to know the investor's return rate. One of the basic pillars in finance it that $1 today is worth more than $1 tomorrow. We need a return rate to adjust the premium paid, for example if the return rate = 6%, then the premium would have been $9.30 x (1 + 6%/12)² = $9.30 x 1.005² = $9.39
profit = number of shares x (put payoff - adjusted premium)
Answer:
$184.34
Explanation:
The computation of activity rate for the Order Size activity cost pool is shown below:-
The Activity rate for Order size = Estimated order size overhead cost ÷ Total machine hours
= 1,069,190 ÷ 5,800
= $184.34
Therefore for computing the activity rate for the Order Size activity cost pool we simply applied the above formula and ignore all other value.
Answer:
No
Explanation:
An investment that "promises" a 44 percent annual return is most likely a scam, because even the riskiest stocks rarely yield annual returns higher than 10% of the initial investment.
Besides, the option is described as very complicated, and you as a potential investor do not understand it well, which is a very difficult position to be in because it could even lead you to being scammed without realizing.
Answer:
(a) update depreciation for 2018
Debit ; Depreciation $10,800
Credit Accumulated Depreciation $10,800
(b) record the sale
Debit : Cash $12,960
Debit : Accumulated Depreciation $62,100
Credit : Profit and Loss $10,260
Credit : Equipment at Cost $64,800
Explanation:
(a) update depreciation for 2018
Recognize deprecation
(b) record the sale
Recognize proceeds from sale and profit or loss from sale
