Which of the following is a service-based business? (Select the best answer.)

You own one call option with an exercise price of $30 on Nadia stock. This stock is currently selling for $27.80 a share but is

Shalnov [3]

Answer: 0.755

Explanation:

From the information given, the current per share value of the option if it expires in one year will be calculated as follows:

Firstly, we calculate the present value which will be:

= $28 / ( 1 + 0.05 )

= $28/1.05

= $26.667

The number of options needed will be:

= ( 34 - 28 )/ ( 4-0)

= 6/4

= 1.5

Therefore,

27.80 = (1.5 x Co) + [28 / (1+0.05)]

27.80 = 1.5Co + (28/1.05)

27.80 = 1.5Co + 26.667

1.5Co = 28.0 - 26.667

1.5Co = 1.1333

Co = 0.755

Therefore, the answer is 0.755

5 0

3 years ago

Suppose Hale and sons purchases 800,000$ of 5% annual bonds of Mcphee Corporation at face value on January 1, 2014. These bonds

r-ruslan [8.4K]

Answer:

1) Journalize Hale and Sons transaction related to the bonds for 2014

The McPhee Corporation bonds are classified as long term assets (more than 1 year), and as held to maturity

January 1, 2014, investment in McPhee Corporation bonds

Dr Investment in McPhee Corporation bonds 800,000

Cr Cash 800,000

June 30, first coupon payment received from investment in McPhee Corporation bonds

Dr Cash 20,000

Cr Interest revenue 20,000

December 31, second coupon payment received from investment in McPhee Corporation bonds

Dr Cash 20,000

Cr Interest revenue 20,000

2) journalize the entry required on the McPhee bonds maturity date.

December 31, 2018, last coupon payment + principal received from investment in McPhee Corporation bonds

Dr Cash 820,000

Cr Investment in McPhee Corporation bonds 800,000

Cr Interest revenue 20,000

4 0

3 years ago

Finerly Corporation sells cosmetics through a network of independent distributors. Finerly shipped cosmetics to its distributors

Evgen [1.6K]

Answer:

The amount of revenue Finerly should recognize upon delivery to its distributors is $0.

Explanation:

From the question, the following two very important points can be observed:

1. Finerly expects the distributors to be able to sell the cosmetics, but is uncertain because it has little experience with selling cosmetics of this type.

2. Finerly is committed to accepting the cosmetics back from the distributors if the cosmetics are not sold.

Since there is an uncertainty that the the distributors will be able to sell the cosmetics and Finerly is committed to accepting them back from the distributors if they are not sold, these imply that the amount of sales revenue cannot be known or reasonably estimated until when the distributors actually sell the cosmetics.

Therefore, the amount of revenue Finerly should recognize upon delivery to its distributors is $0.

8 0

3 years ago

The discount rate is the interest rate banks charge their best customers. the interest rate banks charge each other for overnigh

lubasha [3.4K]

The interest rate banks charge each other for overnight loans.

7 0

3 years ago

After an interview, you are told that the company is unsure of when a decision will be made. Because you have some time and want

bixtya [17]

Answer:

Send a separate letter to each interviewer ; Mention something you liked about the interview

Explanation:

Sending a follow up message to recruiters (interviewers) after few days of an interview about the status of your job application, assists in updating prospective employee & re-emphasises on the applicant's profile suitability for the job.

Writing a separate letter to each interviewer, mentioning something you like about the interview : Makes you build a good rapport with prospective employers, highlights your professional personality positive traits. It also appreciates the company for their selection procedure time spent on you as an applicant.

3 0

4 years ago