Answer:
B). 365 days by the accounts receivable turnover.
Explanation:
This is said to be the time it takes for a business to receive money owed by its client in its amount receivable(AR).
The average collection period formula is the number of days in a period divided by the receivables turnover ratio. The numerator of the average collection period formula shown at the top of the page is 365 days. For many situations, an annual review of the average collection period is considered.
Answer: False.
Explanation: Including leases on the balance sheet as an asset and liability has not lowered a firm's debt-to-equity ration.
Hope this helps! :)
"The percentage of tax rises" is what <span>happens to the percentage of an income that is taxed when income rises and the tax is a proportional one. The correct option among all the options that are given in the question is the second option or option "B". I hope that this answer has come to your desired help.</span>
Answer:
Explanation:
Consider a portfolio consisting of: shares1option−+(Note: The delta, , of a put option is negative. We have constructed the portfolio so that it is +1 option and −shares rather than 1−option and +shares so that the initial investment is positive.) The value of the portfolio is either 355−+or 45−. If: 35545−+= −i.e., 0 5 = − the value of the portfolio is certain to be 22.5. For this value of the portfolio is therefore riskless. The current value of the portfolio is 40f− +where fis the value of the option. Since the portfolio must earn the risk-free rate of interest (400 5) 1 0222 5f + =Hence 2 06f=i.e., the value of the option is $2.06. This can also be calculated using risk-neutral valuation. Suppose that pis the probability of an upward stock price movement in a risk-neutral world. We must have 4535(1)40 1 02pp+−= i.e., 105 8p=or: 0 58p=The expected value of the option in a risk-neutral world is: 00 5850 422 10 + =This has a present value of 2 102 061 02=This is consistent with the no-arbitrage answer.