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bezimeni [28]
4 years ago
11

Your client holds 1 listed XYZ August 50 call. A cash dividend of $2.50 per share is declared. On the ex-date, the terms of the

call are: (A) Exercise Price: $47.50, Number of Underlying Shares per Contract of XYZ: 102 (B) Exercise Price:$50.00, Number of Underlying Shares per Contract of XYZ: 100 (C) Exercise Price: $52.50, Number of Underlying Shares per Contract of XYZ: 97 (D) Exercise Price: $52.50, Number of Underlying Shares per Contract of XYZ: 102
Business
1 answer:
erik [133]4 years ago
3 0

Answer:

(B) Exercise Price:$50.00, Number of Underlying Shares per Contract of XYZ: 100

Explanation:

The declaration of the dividends will not affect the exercise price of the call, it will still be $50 per stock. Also, the number of stocks included in the call will not change because a cash dividend is declared, they will still be 100 stocks included in the call contract. The cash dividend affects the market price of the stock, but not the call or put options.

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MC algo 13-11 Capital Structure Weight Kim's Bridal Shoppe has 11,900 shares of common stock outstanding at a price of $53 per s
Sveta_85 [38]

Answer:

the capital structure weight of the common stock is 44.4%

Explanation:

The Weight of a Capital Source in Capital Structure is determined by expressing the Value of that Capital Source as a percentage of the Total Capital of the Company

<em>Capital Source                        Market Value                        Weight</em>

Common stock                        $630,700                                  44.04%

Preferred stock                        $ 27,900                                     1.95%

Bonds                                       $773,500                                  55.01%

Total                                        $1,432,000                               100.00%

CALCULATIONS OF THE MARKET VALUES ARE AS FOLLOWS

Common stock =   11,900 shares× $53 per share =           $630,700

Preferred stock=     300 shares× $93 per share   =             $ 27,900

Bonds               =     $2,000×110.5%× 350 bonds  =            $773,500

8 0
3 years ago
Read 2 more answers
Suppose a producer charges $20 for a new toy. At this price, the producer supplies more toys than people demand, so there is a(n
Mkey [24]
Suppose a producer charges $20 for a new toy. At this price, the producer supplies more toys than people demand, so there is an excess supply. The producer decides to lower the price to $15. At this new price, quantity supplied equals quantity demanded. So $15 is the equilibrium price.
3 0
4 years ago
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Answer: Exclusive right of sale listing

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Exclusive right of sale listing is known to be a mutual agreement between a broker and the owner of a property. In this type of contract, the listing broker act as an agent of the property and has the right to sell the property within the stipulated time period agreed upon with the seller. This is done in order for the property to be sold on time and at a good price. Thus, if the property is sold by another agent or the owner of the property, the listing broker will still be paid his commission.

4 0
3 years ago
Hand over hand steering is particularly well suited when speed of the steering movement is critical. True or false
Hunter-Best [27]

Answer:

True

Explanation:

Hand-over-hand steering is appropriate when the speed of steering is critical, such as with skid recovery in a rear-wheel traction loss.

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7 0
3 years ago
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igor_vitrenko [27]

Answer:

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• Green jumps from Queue to Pack only

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THE ATTACHED IMAGE HAS THE REPRESENTATIONS OF KANBAN CARDS.

8 0
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