Answer:
Answer :The annual incentive fees according to Black Scholes Formular =2.5
Explanation:
a)Find the value of call option using below parameter
current price (st)=$71
Strike price(X)=$78
Rf=4%
std=42%
time=1
value of call option=15.555
Annual incentive=16% x 15.555=2.5
The annual incentive fees according to Black Scholes Formular =2.5
(b) The value of annual incentive fee if the fund had no high water mark and it earned its incentive fee on its return in excess of the risk-free rate? (Treat the risk-free rate as a continuously compounded value to maintain consistency with the Black-Scholes formula.)
current price (st)=71
Strike price(X)=78
Rf=(e^4%)-1 = 4.08%
std=42%
time=1
value of call option=17.319
Annual incentive=16% x 17.319=2.77
Answer:
once in place, the ERP can dramatically enhance operational efficiencies and reduce costs.
Explanation:
Based on the scenario being described within the question it can be said that Sam should still go ahead with the implementation because once in place, the ERP can dramatically enhance operational efficiencies and reduce costs. Therefore seeing as the main goal of every product development company is to output as much product as efficiently as possible and at very low costs then it is worth implementing this system.
Answer and Explanation:
The preparation of the income statement is presented below:
Revenue $26,300
Expenses:
Depreciation expense $985
Fuel expense $3,438
Maintenance and repairs expense $1,675
Other expense(income) net $5,319
Provision for Income taxes $857
Purchased Transportation $1,281
Rentals and Landing fees $1,862
Salaries and Employee benefits $9,387
Net income $1,496
Answer:
The appraisal interview should be held in two segments because the rater must perform the role of both evaluator and counsellor.
Explanation:
Following are the purpose of appraisal interview:
1) Rate and evaluate the past performance.
2) Feedback for development and recommend the training program.
3) Discuss the growth plan of employee.
Therefore, role of one who is taking appraisal is very vital for the growth and development of employee. So, he has to play two role, both evaluator and counsellor.
The taxpayer must increase his 2019 gross income by $5,000 in accordance with the tax advantage rule to make up for the 2018 calculation error. This statement is false.
<h3>What various forms of income tax are there?</h3>
The two types of taxes are direct tax and indirect tax. The term "direct tax" refers to taxes imposed on earned income. Income tax is a great example of direct taxation. The government imposes an indirect tax on a taxpayer in exchange for the goods and services they offer.
<h3>The person who pays income taxes is?</h3>
Income taxes are levied on several types of income, including wages and salaries, investment income, and others. Payroll taxes, which sustain Social Security, are the second-largest source of federal revenue.
To learn more about Income Tax here:
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