Managerial is the right answer
Answer:
A. Buy a call
Explanation:
In the case when the investor purchase a call on the stock so the investor has the right to purchase for repurchase for a fixed price
Also the right way is to hedge a non-realized profit for a stock position i.e. short for purchasing a call
Therefore in the given situation, the correct option is A.
Answer:
The correct answer is letter "B": Project's expected cash flows.
Explanation:
Capital budgeting is a planning method used by businesses to decide which new projects to invest in and how to fund them. The types of projects evaluated in capital budgeting include large expenditures such as the <em>construction of a new factory, the acquisition of new equipment, the development of a new product </em>or <em>the purchasing of another company</em>.
<em>In the beginning, it is crucial to </em>estimate the firm's cash flows<em> to determine how much funds will be available for investing and covering expenses. If insufficient, the company must look for forms of raising capital such as issuing investment vehicles such as stock or bonds or relying on financial institutions through loans.</em>
Answer:
Use rerospective valuation and then begin to use Fair value valuation of the investment account from 2019 and beyond
Explanation:
First, it should be noted that Jordan will make use of different methods to account for change in its account.
A first method will apply to a retrospective adjustment method to make relevant changes in the investment account
The second step is to now use the fair-value method for his account from 2019 and beyond.
The idea of using a retrospective method is to engage or apply a new accounting pricnciple as though it has always been applied, using the retrospective method will assist Jordan to compare teh year 2018 where it had significant influence over the opeations of Nico to 2019 and future years when it begins to use the fair-value method of investment valuation.
