Answer: c. capital loss.
Explanation:
A capital loss refers to a scenario where the price of a security falls below the price at which it was purchased. This is what happened to the Alpha Industries stock above as the price dropped from $39 to $37 which led to a capital loss of $2.
The dividends paid seem to outweigh the capital loss but we cannot be certain of this unless we know the tax rate being applied to the dividends and because these are usually high, the after tax dividends might have been lower the capital loss of $2.
Answer:
Elastic demand
Unit elastic demand
Inelastic demand
Explanation:
Elasticity of demand measures the degree of responsiveness of quantity demanded to changes in price.
Elasticity of demand = percentage change in quantity demanded/ percentage change in price.
Denand is elastic if when price is increased, the quantity demanded changes more than the increase in price. Quanitity demanded is more sensitive to changes in price.
If price is increased, the quantity demanded falls and as a result the total revenue earned by sellers falls.
The elasticity of demand is usually greater than 1 when demand is elastic.
Demand is unit elastic if a change in price has the same proportional change on quantity demanded. The coefficient of elasticity is equal to one.
If price is increased, the quantity demanded changes by the same proportion so there's no change in total revenue of sellers.
Demand is inelastic if a change in price has little or no effect on quantity demanded.
Coefficient of elasticity is usually less than one.
If price is increased, there is little or no change in the quantity demanded and as a result the revenue earned by sellers increase.
I hope my answer helps you
Answer:
b. Liabilities assumed, at book value.
Explanation:
International Financial Reporting Standards (IFRS) and International Accounting Standards (IAS) require everything (Assets, Liabilities and Non-controlling interest) to be measured at the fair market value, the amount a third-party would pay on the open market, at the time of acquisition — the date that the acquirer took control of the target company.
Answer:
Buy 0.8 shares for each option purchased
Explanation:
Calculation to determine What is necessary to hedge the position
Using this formula
N=Vu-Vd/U-D
U = stock price in case of an up move = $36
D = stock price in case of an down move = $26
VU = put option value if stock goes up = $0
VU = put option value if stock goes down = $32 - $26 = $6
Using this formula
N=
−
V
U
−
V
D
U
−
D
N
=
−
0
−
6
36
−
26
N
Now let calculate What is necessary to hedge the position
Value =74 x + 6
Hence,
90x=74x + 6,
x=6/(90-74)
x=6/16
x=.375
All of the following qualitative considerations may impact upon capital investment analysis except manufacturing sunk cost
.
Option c
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Explanation:
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In a manufacturing setup or any business environment Capital investment plays a major role. To do the long term investment and to assess the profitability the company will do a budgeting procedure is called the capital investment analysis.
The assessment of fixed assets like equipment, machines of a manufacturing sector is done by the capital investment analysis. From the above the manufacturing sunk cost is not considered for the analysis because it the money which has spent already that cannot be recovered.
