Answer: $20,000
Explanation:
To calculate Citicorp's profit or loss we can use the following formula,
The Citigroup's profit is computed as shown below:
= Exercise Price - Spot Price + Premium received
= $ 0.59 - $ 0.60+ $ 0.02
= $ 0.01 per euro is Citicorp's profit.
Total profit will therefore be:
= $ 0.01 x 2,000,000
= $ 20,000
$20,000 is Citicorp's profit on the call option.
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Answer:
The new machine should not be purchased.
Explanation:
initial outlay = -$3,700 + $1,000 = -$2,700
cash flow years 1-4 = $700
discount rae = 8%
Using a financial calculator, the NPV = -$381.51
Since the NPV is negative, the new machine should not be purchased.
The key considerations that should be made when choosing the most suitable type of stock is to control the stock.
<h3>What should the company control stock?</h3>
When stock is controlled it ensures that there is materials or resources available enough for production.
It includes adequate monitoring of the stock level to ensure sustainability through details inventory and monitoring.
Therefore, the key considerations that should be made when choosing the most suitable type of stock is to control the stock.
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Answer:
E. $40.68
Explanation:
The computation of the stock worth today is shown below:
= (Dividend in year 1 ÷ 1 + required rate of return^number of years ) + (Dividend in year 2 ÷ 1 + required rate of return^number of years) + (Dividend in year 3 ÷ 1 + required rate of return^number of years) + (Dividend in year 3 ÷ 1 + required rate of return^number of years) × (1 + growth rate) ÷ (required rate of return - growth rate)
= $1.2 ÷ 1.14 + $1.5 ÷ 1.14^2 + $2 ÷ 1.14^3 + $2 ÷ 1.14^3 × (1 + 10%) ÷ (14%-10%)
= $40.68
We simply applied the above formula
195,000
An average of 195,000 people in the United States fall victim to hate crimes each year. This is according to FBI report in 2010. Fewer than 5% of this number report the crime.
A hate crime is a crime committed due to hate of personal biases. Majority of hate crimes are due to a person's race. Aside from this, people fall victim to hate crime because of his/her religion, sexual orientation, ethnicity, or disability.
