All categories

2 years ago

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

You might be interested in

Product prices are set on the marketing budget detail spreadsheet

Alinara [238K]

1. The answer is "b. false".

A Marketing Budget is Marketing Plan as far as expenses. Advertising Budget is an expected measure of cost that will be required to advance items or administrations. Promoting Budget is for the most part some portion of a showcasing plan and vital piece of the advertising procedure. It incorporates every single limited time cost like promoting and advertising, utilizing staff, office costs and different costs included for showcasing. This financial plan is made to evaluate the costs that are important for growing a business.

2. The answer is "c. entering the target segment on the marketing budget detail".

A market segment is a gathering of individuals who share at least one regular qualities, lumped together to showcase purposes. Each market portion is one of a kind, and advertisers utilize different criteria to make an objective market for their item or administration. Advertising experts approach each portion in an unexpected way, after completely understanding the necessities, ways of life, demographics and identity of the objective customer.

3. The answer is "false".

Advertising is a marketing correspondence that utilizes a transparently supported, non-individual message to advance or offer an item, benefit or idea. Sponsors of advertising are ordinarily organizations wishing to advance their items or administrations. Promoting is separated from advertising in that a promoter pays for and has authority over the message. It varies from individual offering in that the message is non-individual, i.e., not coordinated to a specific person.

4. The answer is "c. both".

Pricing is the procedure whereby a business sets the cost at which it will offer its items and benefits, and might be a piece of the business' marketing plan. In setting prices, the business will consider the cost at which it could obtain the merchandise, the assembling cost, the commercial center, rivalry, economic situation, brand, and nature of item.

When setting your prices you should ensure that the cost and deals levels you set will enable your business to be beneficial. You should likewise observe where your item or administration stands when contrasted and your opposition.

5 0

2 years ago

One of the reasons the apple ii computer was popular was that ________.

Svet_ta [14]

One of the reasons why the Apple II computer was popular and known to the people was that the "operating system of this computer was stored in the ROM or Read-Only Memory". It is developed with advanced utilities and also the first multi-touch wireless mouse was also being developed by Apple company. Other reasons, why people choose Apple II computer over the other brand was that its durability and uniqueness. But this computer is much expensive compared to other known brands but still, people keep patronizing the apple II computer product.

4 0

3 years ago

Suppose that a substantial number of discouraged workers become encouraged about potential job prospects and start looking for w

zzz [600]

Hello, the answer is Decrease

6 0

2 years ago

On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $85,050 in assets in exchange for i

hoa [83]

Answer:

$3,260

Explanation:

Preparation of December statement of cash flows for Ernst Consulting

ERNST CONSULTING Income Statement

For Month Ended October 31

REVENUES

Consulting fees earned $17,450

Total revenues $17,450

EXPENSES

Rent expense $4,530

Salaries expense $8,090

Telephone expense $880

Miscellaneous expenses $690

Total expenses $14,190

Net income $3,260

($17,450-$14,190)

Therefore December statement of cash flows for Ernst Consulting will be $3,260

5 0

2 years ago

Mobray Corp. is experiencing rapid growth. Dividends are expected to grow at 32 percent per year during the next three years, 22

KatRina [158]

Answer:

$1.3794

Explanation:

The computation of the projected dividend for the coming year is shown below:

Last year dividend paid = Do

Expected Dividend in Year 1 (D1) = Do ( 1+g) = Do × 1.32

Dividend in Year 2 (D2) = Do ( 1+g)^2 = Do × 1.32^2

Dividend in Year 3 (D3) = Do ( 1+g)^3 = Do × 1.32^3

Dividend in year 4 , (D4) = D3 × (1+g) = Do × 1.32^3 × 1.22

Now the price at year 4 is

P4 = D4 × (1+g) ÷ ( R-g )

= Do × 1.32^3 × 1.22 × (1 + 0.07 ) ÷ ( 0.10 - 0.07 )

= Do × 100.08

Use Gordon Growth Model

The Current Price of Stock is

= D1 ÷ ( 1+ R)^1 +D2 ÷ ( 1+ R)^2 + D3 ÷ ( 1+ R)^3 + D4 ÷ ( 1+ R)^4 + P4 ÷ ( 1+ R)^4

$78 = Do ( 1.32 ÷ 1.1 + 1.32^2 ÷ 1.1 ^2 + 1.32^3 ÷ 1.1^3 +1.32^3 × 1.22 ÷ 1.1^4 + 100 .08 ÷ 1.1^4)

$78 = Do ( 1.2 +1.44 + 1.728 + 1.9165 + 68.36 )

Do = $1.045

Now

Projected Dividend for Year 1 is

= Do × 1.32

= $1.045 × 1.32

= $1.3794

8 0

3 years ago