Answer:
the expected rate of return of the junk bond = 17%
Explanation:
the expected rate of return of the junk bond = (return if the company makes a profit x probability of the company making a profit) + (return if the company makes goes bankrupt x probability of the company going bankrupt) + (return if the company breaks even x probability of the company breaking even)
the expected rate of return of the junk bond = (40% x 0.3) + (0 x 0.2) + (10% x 0.5) = 12% + 0 + 5% = 17%
Answer:
The answer is D. I, II, and III
Explanation:
As an investor buy a puts, he has the right to sell at exercised price stipulated in the put contract, which hedge the investor from the risk that the price in 6-month time will be going below the exercised price ( because he is able to sell the stock at exercised price through put option he holds). So, I is correct.
II. is correct because be writing a calls the investor has the obligation to sell at exercised price, given the market price fall below the exercised price in 6-month time, the call will not be exercise; however, he will be compensate by the premium from writing a call.
III. is correct because a short call will include holding the underlying asset, thus; once the major stock price decline happens, the profit from the strategy will be deducted due to decrease in underlying'asset price. Thus, in this situation, hedging with puts is probably better.
The statement, "As marketers embraced the concept of integrated marketing communications, they began asking their ad agencies to rely primarily on media advertising," is:
<h3>What was the stance of the marketers?</h3>
When marketers started accepting integrated marketing communications, they did not tell their ad agencies to rely only on media advertising. They rather told them to adequately manage the promotional materials that they had.
Instead of focusing on just one type of promotional tool, they encouraged diversification. So, it is wrong to say that they asked their agencies to focus only on media advertising.
Learn more about marketing communications here:
brainly.com/question/7176800
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Answer:
The answer is: 92 shareholders
Explanation:
According to the S corporation shareholder limit rules, family members count only as 1 shareholder. The meaning of family member is very broad, including spouses, uncles, aunts, children, grandparents, grandchildren, first cousins, and even ex-spouses count as members of the same family.
So that means that Tone Loc, his grandfather, his four cousins, his five children and three of his grandchildren, will all together count as just one shareholder.
His two friends are not included in his family.