Answer:
The answer is "1.38357"
Explanation:
Given values:
The current market value of the assets (s)= $ 47
standard deviation(
) = 21%
risk-free rate (r)=3.6%
Exercise price (X) = 35
Maturity time (T)= 2 year
Formula:
by solving the given values, we get the d1 value that is "1.38357"
What do you need help with?
Answer:
an inflationary increase in the price level.
Explanation:
Monetary policy can be defined as the actions (macroeconomic policies) adopted and undertaken by the central bank of a particular country to control the money supply and interest rates so as to boost or enhance economic growth. The central bank uses monetary policies to manage inflation, economic growth through long-term interest rates and level of unemployment in a country.
In order to boost economic growth, a monetary policy is implemented to increase money supply (liquidity). Also, it is used to prevent inflation by reducing money supply.
An inflationary gap, also referred to as an expansionary gap in economics, is typically used for measuring the difference between the gross domestic product (GDP) and the current level of Real Gross Domestic Products that exists when a country's economy is gauged at a full employment rate. Consequently, this situation causes the price of goods and services to go up with a low income level among the people living in the country.
A budget deficit is the amount by which spending exceeds income.
All other factors held constant or all things being equal (ceteris paribus), an increase in government's budget deficit drives the interest rate up.
Generally, when there's a deficit in government budget, they resort to issuing more bonds or borrowing money from creditors. These creditors are likely to be sceptical about the government's ability to repay the debt and as such would increase the interest rate.
Hence, an inflationary increase in the price level of goods and services is not much of a danger if the U.S. economy is producing at a level that is substantially less than potential gross domestic product (GDP) and the aggregate demand is being increased by government's budget deficits.
Answer:
Option B. Units completed and transferred to finished goods
&
Option C. Units in ending work in process inventory
Explanation:
The reason is that the Equivalent units of Production that include number of units that would have been completed if all the efforts required were applied to the product completion which are the products started and finished during the period. The definition clearly states that the units considered would be the one that are shifted to finished goods from work in progress state in the current year or the one which is at work in progress state.
In the nutshell, the only units that would be considered in the assignment of the cost in the Step 4 will be either Work in Progress (Option C) or the Finished Goods that is shifted to Work in Progress (Option B).
Answer:
Sell option is preferred.
Explanation:
The decision whether to lease out the machinery that is surplus to requirement or sell outrightly is dependent on the differential analysis performed below.In the analysis I have compared the profits under each option in order to guide the final decision:
Differential analysis as at 7th November(Sale or lease option)
Sell option lease option
revenue from sell/lease option $180,000 $200,000
Brokerage commission(5%*$180,000) ($9,000) -
costs of repairs,insurance and property taxes - ($34,400)
Profits $171,000 $165,600
The sell option provides $5400($171,000-$165,600) than the lease option,hence the sell option is preferred.
One would have expect that the lease option since it has more revenue to preferable but the costs of repairs,insurance and property taxes were also on the high side
