I'm am pretty sure the answer is b.
Answer:
$125
Explanation:
Time value = Premium - Intrinsic value
Premium. = 2 or $200 i.e 2×100
Intrinsic value = 75
= $200 - $75
= $125
Answer:
($35 million + $12 million) / $70 million = 0.6714
Explanation:
Answer:
6.12%
Explanation:
Calculation for How does our decision depend on the interest rate at which we can invest our funds
Present value = 6000-3060
Present value = 2940
Future value = Present value+Present Value*Numver of month* Rate of interest/ 100
3000 = 2940+2940*4/12*R/100
60 = 2940*4/12*R/100
60*12/4 = 2940*R/100
180 = 2940*R/100
180/2940 = R/100
0.061224 = R/100
Rate = 6.1224
Therefore How does our decision depend on the interest rate at which we can invest our funds is 6.1224
Answer:
a. Salary for the second year:
Salary is to increase by 4% in second year.
= 53,000 * (1 + 4%)
= $55,120
b. Third year salary:
Second year salary will increase by 5.5%
= 55,120 * (1 + 5.5%)
= $58,151.60
c. Fourth year salary:
Third year salary to increase by 11.1%
= 58,151.60 * (1 + 11.1%)
= $64,606.43