Answer: 0.755
Explanation:
From the information given, the current per share value of the option if it expires in one year will be calculated as follows:
Firstly, we calculate the present value which will be:
= $28 / ( 1 + 0.05 )
= $28/1.05
= $26.667
The number of options needed will be:
= ( 34 - 28 )/ ( 4-0)
= 6/4
= 1.5
Therefore,
27.80 = (1.5 x Co) + [28 / (1+0.05)]
27.80 = 1.5Co + (28/1.05)
27.80 = 1.5Co + 26.667
1.5Co = 28.0 - 26.667
1.5Co = 1.1333
Co = 0.755
Therefore, the answer is 0.755
When goods are shipped FOB destination and the seller pays the freight charges, the buyer c.makes no journal entry for the freight.
<h3>What are the journal entries for FOB destination transactions?</h3>
When merchandise is sold on FOB destination terms, it implies that the seller is legally responsible for the safety of the goods until delivered to the buyer. In most cases, the buyer does not pay for the freight.
In such a case, the Seller also records the delivery expense or freight as a period expense.
The buyer does not make any journal entry for the cost of delivery or (freight). Since the seller bears all the delivery risks, the buyer can only pay for the cost of the goods when they reach the buyer's destination.
Thus, when goods are shipped FOB destination and the seller pays the freight charges, the buyer c.makes no journal entry for the freight.
Learn more about FOB destination deliveries at brainly.com/question/24920251
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Answer: Option (d) is correct.
Explanation:
Contribution margin = Fixed cost + Pretax Income
= $1,296,000 + $1,656,000
= $2,952,000
Variable cost = Sales - Contribution margin
= (360,000 units × $19.80 per unit) - $2,952,000
= $7,128,000 - $2,952,000
= $4,176,000
Answer:
The insurance cost should be allocated to the products made in January and to those made in February is $8,000 and $7,000 respectively.
Explanation:
For computing the allocated insurance cost, first, we have to compute the per labor rate which is shown below:
Per labor rate = (Annual premium) ÷ (Labor hours)
= ($120,000) ÷ (48,000 hours)
= $2.5
Now the insurance cost would be
For January = Labor rate per hour × number of labor hours\
= 3,200 hours × $2.5
= $8,000
For February = Labor rate per hour × number of labor hours
= 2,800 hours × $2.5
= $7,000
Development is the process of an economy’s increasing industrialization, standard of living, and economic wealth.
When there is a development in economics, they focus on improving the fiscal economic and social conditions in developing countries. Development does not happen over night or at a fast pace but eventually the areas they want to have developed become more economically sound to keep up with the economy's needs. There are 4 stages of economic development, they are expansion, peak, contraction and trough.
