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Vanyuwa [196]
3 years ago
11

Michael Jordan purchases (long) 10 shares of XYZ stock for 23.00 per share. Six months from now he will sell all 10 shares. The

continuously compounded risk free rate is 5%.
A. What is the breakeven stock price at the end of six months?
B. What is his profit if the stock price at the end of six months is 23.80 per share?
Business
1 answer:
melamori03 [73]3 years ago
3 0

Answer:

a) Breakeven price = Purchase price + Interest amount that would have been earned on the invested amount

Breakeven price = 23 + [23*e^(0.05*1/2) - 23]

Breakeven price = 23 + 0.5822477721

Breakeven price = $23.5822477721

b) Profit = Selling price - Breakeven price

Profit = $23.80 - $23.5822477721

Profit = $0.2177522279 per share

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it a person that is in line to be the nexted manger

Explanation:

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2 years ago
At the beginning of the year, Smith Company budgeted overhead of $129,600 as well as 13,500 direct labor hours. During the year,
andre [41]

Answer:

Part 1

$9.60

Part 2

$11,129

Part 3

Journal 1

Debit : Overheads $172,500

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Credit : Depreciation on building 19,340

Credit : Indirect labor 90,400

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<em>Being overheads incurred</em>

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Debit : Work In Process $173,760

Credit : Overheads $173,760

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under-applied overheads is $1,260

Part 5

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Explanation:

Overhead rate = Budgeted Overheads ÷ Budgeted Activity

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Actual Overheads = $ 6,800 + $19,340 + $90,400 + $14,560 + $41,400 = $172,500

Applied overheads = 18,100 x $9.60 = $173,760

Since, Actual Overheads < Applied overheads, overheads have been under-applied. Amount of under-applied overheads is $1,260 ($173,760 - $172,500)

Under-applied overheads are added to cost of goods sold. Therefore, adjusted cost of goods sold will be $636,860 ($635,600 + $1,260)

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Answer:

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The April 1 inventory = 17000 units

Now calculate the material required for April production:= [ Materials needed + ending inventory requirements - beginning inventory available ]= [ 68000 + (64000 × 25%) – 17000 ] = 67000 Litres

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I am Lyosha [343]
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