Answer: The correct option is "c.exercising an in-the-money put option".
Explanation: If you consider the equity of a firm to be an option on the firm’s assets then the act of paying off debt is comparable to <u>exercising an in-the-money put option</u> on the assets of the firm.
because he would be paying the debt with the participation in the equity of the company.
Answer: Assets increase $4,500 and liabilities increase $4,500.
Explanation:
An asset are the properties which a business or an organization owns. An asset possess an economic value.
Since the equipment purchased is an asset, this will lead to an increase of assets by $4500 and since it was bought on credit and hasn't been paid for, liabilities will also increase by $4500.
Answer:
False
Explanation:
Revenue tariff means increasing earnings. It will raise government revenue instead of protecting domestic ventures. It is a direct income in the form of tax to obtain from corporate revenues.
On the other hand, protective tariffs are designed to protect domestic producers. It protects local manufacturers by imposing a heavy duty on imported products, which enables the products to become less attractive. Therefore, the aim is to reduce imports.
What Muhammad found unsatisfactory about the Certificate of deposit is that the return on the investment was too low.
Basically, a certificate of deposit is under a Short term investment instrument which yields low interest value for investors.
The Short term investment yields on investment are low because it is for short period of time and involves lesser risks. Other instruments under Short term investment includes Money market etc.
Therefore, the option C is correct because the Certificate of deposit was seen as unsatisfactory by Muhammad because the return on the investment was too low.
Learn more about this here
<em>brainly.com/question/6564414</em>
Answer:
Increase of 130 million
Explanation:
In this question, we are looking to evaluate what has happened to change in deferred tax assets. We proceed as follows;
Firstly, we calculate the current tax.
Mathematically = 40% of 400 million = 40/100 * 400 million = 160 million
Now, as we can see in the question, a decrease in deferred tax asset resulted in an increase in tax expense to a tune of $50 million
This brings the total tax expense to 160 million + 50 million = 210 million
We can see from the question that the company has only recognized a tax expense of $80 million.
This means that the change in deferred tax asset was an increase of 210 million- 80 million = $130 million
