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Over [174]
1 year ago
12

Dwayne has renters insurance that he must pay twice a year. If each payment is $84, how much money should he set aside each mont

h to cover his renters insurance? Round to the nearest dollar.
Business
2 answers:
vlada-n [284]1 year ago
5 0

Answer:

$7

Explanation:

$84 dollars a year, a year has 12 months, so 84/12 = $7

lozanna [386]1 year ago
4 0

since he has to pay it 2 times a year, it should be divided by 6. so 84/6=14

Answer: C. $14

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The price of Chive Corp. stock will be either $86 or $119 at the end of the year. Call options are available with one year to ex
Oliga [24]

Answer and Explanation:

a). Step 1: Calculate the option value at expiration based upon your assumption of a 50% chance of increasing to $119 and a 50% chance of decreasing to $86.

The two possible stock prices are:

S+ = $119 and S– = $86. Therefore, since the exercise price is $85, the corresponding two possible call values are:

Cu= $34 and Cd= $1.

Step 2: Calculate the hedge ratio:

(Cu– Cd)/(uS0– dS0) = (34 – 1)/(119 – 86) = 33/33 = 1

Step 3: Form a riskless portfolio made up of one share of stock and one written calls. The cost of the riskless portfolio is:

(S0– C0) = 97 – C0

and the certain end-of-year value is $86.

Step 4: Calculate the present value of $86 with a one-year interest rate of 5%:

$86/1.05 = $81.90

Step 5: Set the value of the hedged position equal to the present value of the certain payoff:

$97 – C0= $81.90

C0 = $97 - $81.90 = $15.10

b). Step 1: Calculate the option value at expiration based upon your assumption of a 50% chance of increasing to $119 and a 50% chance of decreasing to $86.

The two possible stock prices are:

S+ = $119 and S– = $86. Therefore, since the exercise price is $115, the corresponding two possible call values are:

Cu= $4 and Cd= $0.

Step 2: Calculate the hedge ratio:

(Cu– Cd)/(uS0– dS0) = (4 – 0)/(119 – 86) = 4/33

Step 3: Form a riskless portfolio made up of four shares of stock and thirty three written calls. The cost of the riskless portfolio is:

(4S0– 33C0) = 4(97) – 33C0 = 388 - 33C0

and the certain end-of-year value is $86.

Step 4: Calculate the present value of $86 with a one-year interest rate of 5%:

$86/1.05 = $81.90

Step 5: Set the value of the hedged position equal to the present value of the certain payoff:

$388 – 33C0= $81.90

33C0 = $388 - $81.90

C0 = $306.10 / 33 = $9.28

7 0
1 year ago
A party to a lawsuit that has an actual stake in the outcome of the case has:
MrMuchimi
I believe the answer is Legal standing.
People who had a legal standing are the one that will recieve either harm or benefit after a decision is made.
The amount of involvement that certain parties had in the case will determine how much involvement the party is allowed to influence the case.
3 0
2 years ago
Read 2 more answers
Organic Produce Corporation has 6.3 million shares of common stock outstanding, 350,000 shares of 5.8 preferred stock outstandin
maxonik [38]

Answer:

(a) The firm's market value capital structure is = 0.698

,0.245

, 0.056 (b))Therefore the rate the firm should use to discount the project's cash flows is 9.35%

Explanation:

From the example given, we solve for both (a) and (b)

Solution

Given:

(a) The Market Equity of Value = Number of Shares  Outstanding Shares*Current Selling Price = 6300000*74 = 466200000

Market  Debt Value of  = Number of Bonds*Current  Price selling = 150000*1000*109% = 163500000

Preferred Stock market value = Number of  shares outstanding *Current Selling Price = 350000*107 = 37450000

Then,

The Total Market Value = 466200000 + 163500000 + 37450000 = 667150000

The Weight of Equity in Capital Structure (E/V) = 466200000/ 667150000 = 0.698

The Weight of Debt in Capital Structure (D/V) = 163500000/667150000 = 0.245

The  Preferred Stock weight  in Capital Structure (P/V) = 37450000/667150000 = 0.056

(b)Cost of Equity =  Free Risk Rate + Beta * Risk Premium Market = 4.3 + 1.09*6.8 = 11.712%

The Cost of Stock Preferred = Current/Return Selling Price = (5.8%*100)/107*100 = 5.421%  

Thus,

Debit cost

Nper = 20*2 = 40

Where

PMT = 1000*.071*1/2 = 35.5  and FV = 1000

PV = 1000*109 = 1090

The Rate is unknown

Tax Cost of Debt After = Rate(Nper, PMT, PV, FV) = Rate(40,30.5,-1090,1000)*2*(1-.34) = 3.538%

Then,

WACC = After Tax Cost of Debt*Weight of Debt + Cost of Preferred Stock*Weight of Preferred Stock + Cost of Equity*Weight of Equity

WACC = 3.538*.245 + 5.421*.056 + 11.712*.698 = 9.345% or 9.35%

Therefore the rate the firm should use to  discount the project's cash flows is 9.35%

4 0
2 years ago
Will give brainliest if correct (repost)
Nata [24]

Answer:

decrease in demanded

Explanation:

the green one is the answer

7 0
2 years ago
Read 2 more answers
Lillypad Toys is a manufacturer of educational toys for children. Six months ago, the company's research and development divisio
Reptile [31]

Answer:

Option A; INCREASED COMPETITION FROM IMITATORS.

Explanation:

Innovation occurs only when something is entirely new, having never been done before. Innovation also exist when something which may have been done elsewhere is done for the first time in a given industry.

On the other hand, when other competitors in the same industry subsequently copy the innovator, even though it is something new for them, then it is imitation.

When a company comes out with a new product, its competitors typically go on the defensive, doing whatever they can to reduce the odds that the offering will eat into their sales. Responses might include: cranking up marketing efforts, offering discounts to channel partners and even lobbying for regulations that would hinder the rival's expansion.

Therefore, Lilypad's managers should prepare for INCREASED COMPETITION FROM IMITATORS next.

7 0
1 year ago
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