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
Answer: $22,000
Explanation:
The total revenue to be recognized by Italian Fine Dinning Inc. is the standalone selling price for the franchise services which is $88,000.
As this contract is for a four year period, Italian Fine Dinning Inc will have to recognize the above revenue over a period of 4 years.
Revenue in December 2020 will therefore:
= 88,000 / 4
= $22,000
Answer: Work in process
Explanation:
The work in process is basically refers to the work in the progress that helps in process the production of the products and the services.
The work in process is basically refers to the process inventory system that helps in managing the accounting period and also the cost is basically assigned for the inventory valuation.
According to the given question, the work in process is supported by the cost ledger that manages all the services with the client in the company. Therefore, Work in process is the correct answer.
Therefore, Work in process is the correct answer.
The best illustration of the economic concept is scarcity. Thus the correct option is (C).
<h3>What is Scarcity?</h3>
Scarcity refers to the limited or the shortage of the natural resources in the particular region. It is an economic concept which defines that there is the shortage to the infinite needs of the human beings because resources are finite.
According to the illustration the corner offices in the high rise building has the high rent because of the limited number of the high rise offices and the huge demand of the location.
Thus the correct option is (C).
Learn more about economic concept here:
brainly.com/question/927463
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