Answer:
Explanation:
Profit on a long call option = max(St - X, 0) - premium paid
Profit on a long call option = max(29 - 27, 0) - 1.1
Profit on a long call option = max(2, 0) - 1.1
Profit on a long call option = 2 - 1.1
Profit on a long call option = 0.9 per share
Total profit on the long call option = 0.9 * 100 shares per contract * 3 contracts = 0.9 * 100 * 3 = $270
Net profit on this investment = 270 - 10
Net profit on this investment = $260
Answer:
E. They are simpler when it comes to paperwork, offer some of the same tax advantages and also protect members from unlimited financial exposure
Explanation:
Limited liability companies are set up to protect the owners from liability. The business is a seperate entity from the individual owners and their assets are not used to settle debts of the business.
This type of business is gaining more use than S corporation. S corporation in addition to having liability advantages also requires more rigid requirements to set up. They do not pay corporate tax, but rather are taxed as sole proprietorship or a partnership.
Because of the ease of setting up an LLC more people prefer it to an S corporation. It also protects owners from unlimited financial liability
Answer:
A) $0.075 variable and $450 fixed
Explanation:
to calculate Kendra's fixed and variable components using the high-low method we can use two separate formulas:
variable costs = (highest utility cost - lowest utility cost) / (highest output - lowest output) = ($1,200 - $600) / (10,000 - 2,000) = $600 / 8,000 = $0.075 per unit
fixed costs = highest cost - (highest output x variable cost) = $1,200 - (10,000 x $0.075) = $1,200 - $750 = $450
Answer:
$19.80
Explanation:
The Diluted EPS of Dulce Corporation shall be determined through the following mentioned formula:
Diluted EPS=Net income/Number of outstanding shares
Net income= $4 million
Number of outstanding shares=Common stock shares+shares issued for free due to share options
Common stock shares=200,000
shares issued for free due to share options=Number of options*Intrinsic value/market price of common shares
Number of options=10,000
Intrinsic value=market price-exercise price=$25-$20=$5
Shares exercised due to share options=10,000*5/25=2,000
Diluted EPS=$4,000,000/200,000+2,000
=$19.80
<span>Sales revenue on January 1, 2016 would be recorded as $515,000 becasue if the amount if paid today that is the amount that would be received. For every day that follows sales revenue would be calculated by the following equation (515,000+(.08*515,000/365)</span>