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juin [17]
3 years ago
8

The price of Cilantro, Inc., stock will be either $70 or $92 at the end of the year. Call options are available with one year to

expiration. T-bills currently yield 5 percent. Suppose the current price of the company's stock is $81. What is the value of the call option if the exercise price is $66 per share?
Business
1 answer:
hjlf3 years ago
6 0

Answer:

$18.14

Explanation:

Value of the call = Stock price - Present value of the strike (exercise price)

Stock price = $81

Present value of the strike=66

T-bills yield 5 percent.

$81 – $66/1.05

=$81-62.8571

= $18.14

Therefore tthe value of the call option if the exercise price is $66 per share will be $18.14

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A 4-year project has an annual operating cash flow of $53,500. At the beginning of the project, $4,450 in net working capital wa
Angelina_Jolie [31]

Answer:

E. $63,401

Explanation:

gain on disposal = salvage value of plant - book value on date of sale

                            = $5,790 - $4,820

                            = $970

tax on disposal = $970*35%

                          = $339.50

after tax salvage value = $5,790 - $339.50

                                       = $5,450.50

total cash flow in 4 years

= annual operating cash flow + net working capital + after tax salvage value

= $53,500 + $4,450 + $5,450.50

= $63,401

Therefore, The Year 4 cash flow is $63,401.

3 0
3 years ago
the 5 basic marketing strategies are called the 5 p's. another name for these strategies is ________.
MatroZZZ [7]
I believe it's the marketing mix?
6 0
2 years ago
1. Understanding opportunity costYou work as an assistant coach on the university basketball team and earn $15 per hour. One day
Gwar [14]

Answer:

The correct answer is letter "D": $24.

Explanation:

Opportunity cost can be defined as the cost of the best next available option after taking another decision in regards to a situation. It is also the return that the chosen option provides compared to the return that could have provided the option that was forgone.

In this case, choosing to go to the local carnival will represent losing one hour of working as a coach assistant ($15). Besides, as there is a $9 admission fee to the carnival, you will need to spend that money. Thus, the total opportunity cost of going to the carnival instead of working is $24 (<em>$15+$9=$24</em>).

6 0
2 years ago
A robot manufacturing company in Southeast Asia undertakes a government project to produce multi-utility robots. It requires a s
eimsori [14]

Answer: a. Computer-aided manufacturing

Explanation: A computer-aided manufacturing would help the robot manufacturing company in this regard since it can provide the required software to control the machine tools and processes needed in the manufacture of the multi-utility robots.

Computer-aided manufacturing (CAM) is defined as the use of software and computer-controlled machinery to automate a manufacturing process and is composed entirely of software that tells a machine how to make a product through the generation of toolpaths; a machinery that can turn raw material into a finished product and a post processing unit that converts toolpaths into machine languages. Computer-aided manufacturing thus provides high–speed machine tool paths that greatly minimize cycle times, reduce tool and machine wear and general improvement in quality and accuracy of cutting.

7 0
3 years ago
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The widespread use of mobile devices such as tablets has resulted in employees bringing their own devices into the workplace and
Marta_Voda [28]

The answer to this question is Bring Your Own Device or also known as (BYOT).

<span>Bring your own device is allowing employees or workers to bring their own gadgets like laptop, tablets, mobile phones (smart phones) in the work area to be used at work and connect to the company network, internet, and office applications while working. The benefits of this policy are that it can lower the cost of the company to purchase computers and it also can increase productivity of employees. </span>
7 0
3 years ago
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