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Answer:
Payoff = $2 per share.
Explanation:
In a put option, the long (the party that buy the put) will have gain on the option when the underlying asset price is lower than the excercise price of that asset <em>(imagine the advantage that you can sell a chicken at $12 when it market price of is is only 10)</em>.
Because the stock price is $91, lower than exercise price of 93, so the company should exercise the put. Total payoff per share is 93 - 91 = $2.
<em>Note: We dont include premium to buy the put here because the question asking about payoff. We on include premium in calculations when the question is about profit.</em>
Answer:
The tax rate is the same for all income levels.
Explanation:
A proportional tax system is a tax mechanism that applies equal rates to all income brackets. This system does not segregate based on income earned. The proportional tax system is also the flat rate system.
Since the proportional tax system applies the same rate to all taxpayers, it means that the low income, middle, and high-income earners pay tax at the same rate. The proportional tax system contrasts with other methods, such as the progressive tax system that considers income levels.
Answer:
The correct answer is <em>customer needs, interests, and tastes becoming increasingly homogenized.</em>
Explanation:
As the economic recovery is consolidated, many organizations are taking stock of the strategy followed in terms of centralization / decentralization and begin to consider that it can be a good time to bet on decentralized management in areas such as human resources and human resources management. talent.
Decentralized management can be interpreted as a loss of control by the HR management, because it implies a greater degree of autonomy of the various work centers, by now making the zone managers decisions without involving the entire chain of command, as usual.
Thanks to the creation of guided processes, the highest levels of customization and adaptability to the specific needs of each organization can be achieved, so that the degree of independence and the variation of the chain of command are perfectly defined, under control and defined according to The problem of each organization.
Answer:
After tax cost of debt is 4.16%
Explanation:
The yield on the debt which is pre-tax cost of debt can be computed using the rate formula in excel, which is given as follows:
=rate(nper,pmt,-pv,fv)
where nper is the number of coupon payments,this is calculated as 19*2 since it has a semi-annual coupon interest
pmt is the periodic coupon payment 6.1%/2*$2000=$61
pv is the current price of the bond which is $1933
fv is the face value repayable on redemption $2000
=rate(38,61,-1933,2000)
=3.20%
This is semi-annual yield , annual yield is 3.20%*2=6.40%
After tax cost of debt=6.40%*(1-t)
where t is the tax rate at 35%=0.35
after tax cost of debt=6.40%*(1-0.35)
=4.16%