Answer: $62
Explanation:
The customer sold the stock short at $74 per share. Later on, the customer sold a Sept 65, Put at $3 on this stock. If the short put is exercised, the customer is obligated to buy the stock at $65 per share. Since the customer received $3 in premiums when the put was sold, the net cost to the customer is $62 per share for the stock (this is the cost basis in the stock for tax purposes). The stock that has been purchased is delivered to cover the short sale, closing the transaction. The customer's gain is: $74 sale proceeds - $62 cost basis = 12 point gain.
Answer:
A. -$425.91
Explanation:
Given that
Start up cost = 2700
Cash inflow 1 = 811
Cash inflow 2 = 924
Cash inflow 3 = 638
Cash inflow 4 = 510
Rate = 11.2% or 0.112
Recall that
NPV = E(CF/1 + i]^n) - initial investment or start up cost
Where
E = summation
CF = Cash flow
i = discount rate
n = years
Thus
NPV = -$2,700 + $811 / 1 + 0.112 + $924 / 1 + 0.112^2 + $638 / 1 + 0.112^3 + $510 / 1 + 0.112^4
NPV = -$425.91
Therefore, NPV = -$425.91
Answer:
5.784%
Explanation:
PV = $91000
PMT = -$1750
N = 60
FV = $0
<em>Using the financial calculator to solve for I/Y</em>
Interest yield = CPT I/Y(91000, -1750, 60, 0)
Interest yield = 0.00482
Interest yield = 0.482%
Highest rate APR = 0.482%*12
Highest rate APR = 5.784%
So, assuming monthly compounding, the highest rate i can afford on a 60-month APR loan is 5.784%.
Answer:
1. Manufacturing overhead applied = Actual hours * Predetermined overhead rate
Manufacturing overhead applied = 13300 * $20
Manufacturing overhead applied = $266,000
From the question, Osborn Manufacturing actually incurred $275,000 of manufacturing overhead. Hence, the Manufacturing overhead is under-applied because the applied manufacturing overhead is less than the actual manufacturing overhead
Hence, Manufacturing overhead under-applied = $275,000 - $266,000
= $9,000
2. Since the applied manufacturing overhead is less than the actual manufacturing overhead, the gross margin would decrease by $9,000. The journal entry will use the under-applied manufacturing overhead for record.
Inventory turnover rate = 8 times
Cost of goods sold = $150,000
Then the average inventory of company is $18,750.
This is how we calculate this;
Cost of goods sold / inventory turnover rate =
$150,000 / 8 = $18,750.
