Answer:
Closing value of inventory = $357 for 21 units
Explanation:
As for the provided information we have,
Under FIFO method we know,
FIFO means First In First Out, under this the goods bought at earliest are sold earliest.
That means first opening inventory is sold, then the inventory purchased at the earliest.
Now we have,
Opening Inventory = 27 units @ $17 = $459
Purchases:
Aug 5 22 units @ $16 = $352
Aug 12 26 units @ $17 = $442
Provided 54 units are sold on Aug 15, that means, opening inventory of 27 units, 22 units bought on Aug 5, and 54 - 27 - 22 = 5 units from purchases on Aug 12.
Therefore, after sale units left = 26 - 5 = 21 units
Thus, closing value of inventory = $357 for 21 units
Answer:
A. 104%
B. 66.7%
Explanation:
A. Calculation for what would be the percentage return earned
Percentage return =($50-$30-30*60%*7%)/30*60%
Percentage return(20-$18*.07)/18=
Percentage return=1.04*100
Percentage return=104%
Therefore what would be the percentage return earned is 104%
B. Calculation for What would have been the return if the investor had notbought the stock on margin
Percentage return=($50-$30)/$30
Percentage return=$20/$30
Percentage return=66.67 %
Percentage return=66.7% Approximately
Therefore What would have been the return if the investor had notbought the stock on margin is 66.7%
Answer:B. One year from now Bond A's price will be higher than it is today.
Explanation:A Noncallable bond is a bond whose investment cannot be redeemed before its maturity date by the issuer, it can only be redeemed after the payment of a penalty.
The issuer of a noncallable bond makes itself vunerable to interest rate risk mainly because, at the issuance of the bond, it is locked to the interest rate it will pay only when the bond's maturity date is achieved.
Coupon rate is the rate at which a bond repay its owner,it can be annual.
Explanation:
Qualitative analysis;
The given case belongs to real options in finance terms where the project offers tangible assets in comparison to financial instruments.
The project is of real option. The value of any real option would be more when:
- the project under consideration is very risky
- With respect to timing option value, there is time to change the decisions
Having said that, since project is risky and investment can be made later, hence it would be more feasible to wait and observe
