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tatyana61 [14]
3 years ago
6

8. The delta of a call option on a firm's assets is .624. How much will a project valued at $48,000 increase the value of equity

Business
1 answer:
erastovalidia [21]3 years ago
7 0

Answer: $29952

Explanation:

From the question, we are informed that the delta of a call option on a firm's assets is 0.624 and that the project is valued at $48,000.

The increase in the value of the equity will be calculated as:

= Value of project investment × Delta of the call option

= $48,000 × 0.624

= $29952

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Calaveras Tire exchanged equipment for two pickup trucks. The book value and fair value of the equipment given up were $34,000 (
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Answer:

1. $51,000

2.$11,000 Gain

Explanation:

(1) Calculation to determine At what amount will Calaveras value the pickup trucks

Using this formula

Trucks value =Fair value + Cash paid

Let plug in the formula

Trucks value=$45,000+$6,000

Trucks value=$51,000

Therefore Calaveras value the pickup trucks at $51,000

(2) Calculation to determine How much gain or loss will the company recognize on the exchange

Using this formula

Gain or loss on exchange =Fair value - Book value

Let plug in the formula

Gain or loss on exchange=$45,000-$34,000

Gain or loss on exchange=$11,000 Gain

Therefore the company will $11,000 GAIN recognize on the exchange

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3 years ago
Give an example of a situation in which a surplus of a product led to decreased prices. similarity, give a example of a situatio
andrew11 [14]

Answer:

Give an example of a situation in which a surplus of a product led to decreased prices. similarity, give a example of a situation in which a shortage led to increased prices. what eventually happened in each case? why?

In the course of having surplus of a product which decreases the price, this happens as a result of high competition as there many people selling the same products which in turns leads to crash in price in order to make sales and little profit.

while product shortage or scarcity happens as a result of decrease in resources or decrease in supply, hence; results into scarcity of products which eventually aids increment of price

Explanation:

3 0
3 years ago
Gina made a down payment on a motorcycle. What incentive did she have for making a down payment?
8_murik_8 [283]

Answer:

A reduced time in debt

Explanation:

Gina intends to purchase that motorbike on credit. By making a down-payment, Gina is reducing the amount she needs to borrow to buy the bike.

A reduced loan amount means that Gina will require less to repay. It also implies that the interest to be paid will reduce. Making the down-payment helps Gina stay in debt for a short period.

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3 years ago
A corporation is a type of partnership that?
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That has share holders and a board of directors.
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3 years ago
When comparing economic, political, and environmental push and pull factors, which of the following is most accurate?
lapo4ka [179]
I had to look for the options and here is my answer. In the comparison of political, economic and environmental push and pull factors, we can say that the statement that shows accuracy related to this is this: "the most common environmental push factor is water." (This answer is based on the actual options attached to this question.)
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3 years ago
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