Answer: C) limit the downside risk of asset ownership
Explanation:
The protective put is a strategy I risk-management which is utilized by the investors in order to help prevent a loss in an asset or stock.
Protective puts helps to act as an insurance by giving protection from the decline of the price of the asset.
Answer:
Complimentary; multiproduct; network
Explanation:
Product compatibility is the capability of an item sold by one firm to function with another firm's complimentary product.
Product compatibility is an industry-wide issue for multiproduct firms selling two or more complementary products subject to network effects.
Product compatibility is simply the ability of a product to go along or function with another product.
A complimentary product is supposed to be compatible with the other compliment goods.
Answer:
$766,250
Explanation:
The value of the firm is calculated as follows:
Value of firm = Current value + (Borrowing *Tax rate)
Value of firm = $670,000 + ($385,000*25%)
Value of firm = $670,000 + $96,250
Value of firm = $766,250
The value of the firm will be $766,250 if it borrows $385,000 and uses the proceeds to repurchase shares.
Answer:
a. ignores non cash expenses
Explanation:
The operating cash flow refers to the day to day operating activities which reflect the cash outflow and cash inflow
The formula to compute the operating cash flow by top-down approach is shown below:
Operating cash flow = Sales revenue - Cost of goods sold - Taxes
It does not considered any depreciation or amortization expenses.
Answer:
d. work with technical personnel.
Explanation:
In the given scenario a manufacturer is making a new buy from a seller. This is a risky investment for the buyer because of uncertainty on how the product will perform and lack of technical know-how in operating the product.
The buyer therefore will require the seller to act as a consultant in case of issues arising from the use of the product, buying decision will take a long time because the buyer will want a good fit for their operations, and more work will be done with technical personnel to train them on how to use the product
