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umka2103 [35]
3 years ago
14

You own stock in a firm that has a pure discount loan due in six months. The loan has a face value of $50,000. The assets of the

firm are currently worth $62,000. The stockholders in this firm basically own a _____ option on the assets of the firm with a strike price of:______ put;
$62,000. put; $50,000. warrant; $62,000. call; $62,000. call; $50,000.
Business
1 answer:
Tema [17]3 years ago
6 0

The stockholders in this firm basically own a call option and the assets of the firm with a stake price of $50,000

Explanation:

The financial contract between the two parties and the options between the buyer and the seller and the buyer have the rights but not the obligation to buy any required product is called as the call in the stock market

The changes that affect the commodity price will be the the base asset price the volatility and the time decay the strike price is usually the starting price of the commodity

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Keene, Inc. produces flash drives for computers, which it sells for $20 each. Each flash drive costs $6 of variable costs to mak
kodGreya [7K]

Answer:

The break even level of units per month fall by 16 units.

Explanation:

The current breakeven units per month are,

Break even in units = 5600 / (20 - 6)  

Break even in units-March = 400 Units

The fixed costs remain constant in the short run to a certain activity level so assuming that the fixed costs will remain $5600.

The new variable costs will be 6 * 0.9 = $5.4

Assuming everything else remains constant,

The new break even in units per month = 5600 / (20 - 5.4)

New break even in units = 383.56 rounded off to 384 units

As a result of decrease in the variable cost per units, the new break even point becomes 16 units less than the previous one.

4 0
3 years ago
Steeze Co. makes snowboards and uses the total cost approach in setting product prices. Its costs for producing 10,000 units fol
Shalnov [3]

Answer:

1. $240

2. 12.5%

3. $168.75

Explanation:

1. Total cost per unit = Variable cost per unit + Fixed cost Per unit

= $150 + $90

= $240

Where ;

Variable costs per unit = Direct material +Direct labor + Overhead + Selling

= $100 + $25 + $20 + $5

= $150 per unit

Fixed costs per unit = Total fixed cost / Number of units produced

= ($470,000 + $105,000 + $325,000) / 10,000 units

= $900,000 / 10,000

= $90 per unit

2. Mark up percentage on Total cost = Mark-up / Total cost *100

= $300,000 / $2,400,000 * 100

= 12.5%

Where;

Total cost = Total cost per unit * Number of units produced

= $240 * 10,000 units

= $2,400,000

3. Selling price = Total cost per unit + Mark up

= $150 + ($150 * 12.5%)

= $150 + $18.75

= $168.75

3 0
3 years ago
Many writers have stated that for strategic objectives to be effective, they should be: ​ a. broad - to cover many dimensions of
likoan [24]

Answer:

The answer is option C) Many writers have stated that for strategic objectives to be effective, they should be measurable - to track progress

Explanation:

Many writers have emphasized the need to make SMART strategies.

In other words, there’s a need for specific, measurable, achievable, realistic and timely.

Therefore, developing a prioritization of projects to ensure the high priority ones have the proper resourcing to ensure success requires a high involvement and commitment to track progress.

The high level of involvement of employees ensures that they understand the strategic plan. It increases their level of commitment to ensure the strategy is successfully executed because they understand how their work and the work they’re completing on the project helps the organization to realize some or all of one of their key strategies.

6 0
3 years ago
A firm organized on the basis of retail customers and wholesale customers utilizes the concept of departmentalization by
lilavasa [31]

Answer:

Customer

Explanation:

In customer departmentalization, departments are basically separated from each other based on the types or groups of customers that needs to be handled or dealt with. For instance, customers can be classified under types such as, bulk purchasing or wholesale customers, retail customers, etc.

To handle them in a better way each group of customers needs different tactics and strategies. Therefore, customer deparmentalization serves the purpose of the firm that is organized on the basis of retail customers and wholesame customers.

3 0
4 years ago
Excise taxes on imported goods that help shield domestic producers of the good are called:________.
vichka [17]

Answer:

the answer is protective tariffs

3 0
3 years ago
Read 2 more answers
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