Answer:
1. Contribution margin per unit
= $80
2. Contribution margin ratio %
=25%
3. Break-even point units
= 6300 units
4. Break-even sales dollars= $2,016,000
Explanation:
Contribution margin per unit = Selling price per unit - Variable cost per unit
= $320 - $240
= $80
2. Contribution margin ratio = Contribution margin per unit / Selling price per unit
= $80 / $320
= 25%
3. Break-even point in units = Fixed cost / Contribution margin per unit
= $504,000 / $80
= 6,300 units
4. Break-even point in sales dollars = (Fixed cost / Contribution margin per unit) X Selling price per unit
= ($504,000 / $80) X $320
= $2,016,000
Answer:
Using put call parity:
C + X/(1+r)^n = S+P
C + 18/(1+0.08)^1 = 20+3.33
C + 18/1.08 = 20 + 3.33
C + 18/1.08 = 23.33
C + 16.67 = 23.33
C = 23.33 - 16.6667
C = 6.67
The call price ($7) is over price, so we should sell call and buy underlying ($6.67). After one year, the underlying option will get a gain of $0.33 ($7-$6.67). So, we should exploit this arbitrage opportunity.
I think the correct answer to this would be:
“Secondary Data”
<span>Secondary data are data which is previously
collected for purposes other than the current one and is an important source of
information. In this case, Major League Basketball would use the data gathered
by Washington post for a different study.</span>
Answer: $66.67
Explanation:
The value of a Preferred Stock is calculated with the following formula,
Value of the preferred stock = Annual Dividend/rate of return
The Annual Dividend is 8% of the face value so,
= 0.08 * $100
= $8
Therefore the Value of the Stock is,
= 8/0.12
= $66.67
Answer:
C) prohibited as a likely exaggeration
Explanation:
The statement being made by the adviser is prohibited as a likely exaggeration. An investment adviser has the moral obligation to advise the client so that they may increase their wealth safely through informed decisions. This does not include exaggerated price predictions. Regardless of past performance, an adviser cannot state that an asset will double in the near future or in the future in general because no one can know what will happen in the future and making such a prediction can be dangerous for the client.