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tatyana61 [14]
2 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]2 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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You were planning to spend your Saturday working at your part-time job, but a friend asks you to go trekking at Karagöl. What is
Natali5045456 [20]

Answer:

the true cost (opportunity cost) of going trekking is what the amount that you could have earned from your part time job on that day instead of going trekking. If you were planning to to study, then the true cost of trekking with your friend would be the loss of all the potential knowledge that you could have gain from studying.

Explanation:

opportunity cost is the loss of potential gain from other alternatives when one alternative is chosen.

7 0
3 years ago
In 2019, Meghann Carlson, a single taxpayer, has QBI of $129,100 and modified taxable income of $103,280 (this is also her taxab
victus00 [196]

Meghann carlson QBI deduction is = $548,623

Solution:

The qualifying business income exclusion (QBI) referred to as Section 199A requires operators to receive up to 20 percent of their eligible business earnings for a tax deduction. It was implemented in the context of the Tax Cuts and Jobs Act 2017.

Since gross deduction for QBI deduction is set at 20% of lower of QBI ($129,100 ) or Taxable income($103,280)

So the lower is taxable income ,

i.e $103,280 × 20% ( 103,280 × 20÷ 100)

  = 20,656 ( 206.56 )

= $548,623

3 0
3 years ago
Peterson Photoshop sold $1,300 in gift cards on a special promotion on October 15, 2021, and sold $1,950 in gift cards on anothe
Anastaziya [24]

Answer:

$1,300

Explanation:

Given that,

On November 15, 2021

sold gift cards = $1,950

Of the gift cards sold in November,

Redeemed in November = $195

Redeemed in December = $455

Therefore, the deferred revenue is as follows

= November sales - Redemptions

=  November sales - (Redeemed in November + Redeemed in December)

= $1,950 - ($195 + $455)

= $1,950 - $650

= $1,300

4 0
3 years ago
The cost of capital of a company that uses 45 percent debt that has an after-tax cost of debt of 10 percent and 55 percent equit
zimovet [89]

Answer:

12.75 %

Explanation:

Cost of Capital is calculated on a Weighted Average basis. This is because there is a Pooling of Funds when it comes to financing projects. So Cost of Capital is the Return that is Required by providers of Long Term source of finance.

Cost of Capital = E/V × Ke + D/V × Kd

Where,

E/V = Market Weight of Equity

      = 0.55

Ke = Cost of Equity

    = 15%

D/E = Market Weight of Debt

      = 0.45

Kd = Cost of Debt

     = 10%

Therefore,

Cost of Capital = 0.55 × 15% +  0.45 × 10%

                         = 12.75 %

4 0
2 years ago
An array of firm resources includes interpersonal relations among managers in the firm, its culture, and its reputation with its
ZanzabumX [31]

Answer: social complexity

Explanation:

Social complexity simply relates to how the existence of human beings are being studied. The things that are studied include armed conflicts, marriage practices, emigration patterns, political movements, natural disasters, etc.

Therefore, array of firm resources includes interpersonal relations among managers in the firm, its culture, and its reputation with its customers and suppliers. Such competitive advantages are based upon social complexity.

6 0
3 years ago
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