Answer:
-$312.50
Explanation:
Randy Rudecki made a purchase of a call option for $0.02 per unit
The strike price was $1.45
The spot rate was $1.46
There were 31,250 units in a British pound option
The first step is to calculate the profit per unit that was derived from the call option
= $1.46-$1.45
= 0.01
Net profit per unit= 0.01-0.02
= -0.01
Therefore, the Randy's net profit on this option can be calculated as follows
= 31,250 units × (-0.01)
= -$312.50
Hence Randy's net profit on this option is -$312.50
The primary purpose of analytical procedures conducted during the planning stage is identifying unusual conditions that deserve additional audit effort.
<h3>What is analytical procedures?</h3>
Analytical procedures are audit methods of evaluating financial statement accounts by studying and comparing relationships among financial and nonfinancial data.
To identify unusual conditions that deserve additional audit support is the primary purpose of analytical procedures conducted during the planning stage.
Therefore, B is the correct option.
Learn more about analytical procedures here:
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Answer:
Total wealth = $7,500
Explanation:
<em>The primary goal of financial management is to increase and maximize the wealth of the shareholders of the corporation. </em>
<em>This wealth is measured and represented by the share price, which is the measured of how much the company is worth at any time.</em>
<em>The higher the share price , hence the higher the value of the company and the higher the wealth of the shareholder</em>.
Wilson's total wealth will be equal to the share price multiplied by the number of units
Total wealth = $37.50 per share × 200
= $7,500
Total wealth = $7,500
Answer:
Explanation:
You can solve this using a financial calculator. I'm using TI BA II plus ;
N = 40*12 = 480 months
PV = -10,000
PMT = -400
FV = 3,350,000
then CPT I/Y = 0.856% (this is a monthly rate)
Next, to find the APR, multiply monthly rate by 12;
APR = 0.856% *12 = 10.275%
To <em>"enter percentages as decimals and round to 4 decimals"</em>, APR =0.1028
Answer:
EBIT = $2.076 million
Explanation:
<em>The market value can be ascertained by discounting the earnings after tax by the weighted average cost of capital (WACC).</em>
So we put dis in an equation;
Market Value = Earnings after tax /WACC
<em>Earnings after tax = (1-tax rate ) × EBIT</em>
<em>Note EBIT means earning before interest and tax. And we don't have this figure. So we denote it with letter " y "</em>
Earnings after tax = (1-0.25) × y
= 0.75y
<em>Substitute this into the market value equation, then we have;</em>
Market Value = Earnings after tax /WACC
17.5 = 0.75y/0.089
0.75y = 17.5× 0.089
y = (17.5 × 0.089)/0.75
y = $2.076 million
EBIT = $2.076 million
