Answer: The values are missing below are the values
a. $105
b. $95
answer :
a) $5
b) -$5 ( loss )
Explanation:
From the perspective of the long position for each of the two options upon expiration
a) For $105
for the long position ( long call ) since the expired price > than the exercise price
i.e. $105 > $100 the profit = $105 - $100 = $5
b) For $95
For the long position ( long call ) since the expired price < than the exercise price
i.e. $95 < $100 the profit = $95 - $100 = - $5 ( a loss is incurred )
Answer with Explanation:
Requirement 1:
The companies whose products are in growth phase or the company is cash cow which has a well diversified products does not have to invest in adding a new product line because their earnings are already stable enough or that they don't have to invest much because sufficient profits are left after extracting for investments. Increase in dividends has two meanings that either the management is confident enough that they think that the company will be able to earn more in the future and they will achieve better position in future which is a good news in the stock exchange and for investors as well and investor invest more in the company's ordinary stock.
Company start Stock repurchase program which is to buyback its previously issued ordinary shares which is because the management thinks that the stock is undervalued and thus they repurchase their ordinary shares so that the stock will go up in near future and this will benefit the company and the existing shareholders as well. This also helps in increasing earnings per share, return on equity, etc because the equity is reduced by share repurchase program.
Stock repurchase program is also run by the organization because they don't find any attractive opportunities. This means that the company does not have any large investment opportunities which means growth in revenue and profit can not be expected in the future years. Thus when the company starts repurchasing of stock the investor starts selling their stocks.
Requirement 2:
If the company thinks that they can increase the worth of shareholders beyond their shareholder's expectation then they don't pay dividend and invest in projects to increase the sales growth, profits and market share significantly in the coming future.
Some long term shareholders think this is a great news whereas short term investors who are looking for dividends will sell the stock which means that the stock value may fall in near future but in long run the company stock value increase when the investment will start showing its results.
Answer:
Flexible budget cost variance= $6,400 unfavorable
Explanation:
<u>To calculate the flexible budget cost variance, we need to use the following formula:</u>
Flexible budget cost variance= (standard costs*actual quantity) - actual costs
Flexible budget cost variance= (6*27,500) - 171,400
Flexible budget cost variance= 165,000 - 171,400
Flexible budget cost variance= $6,400 unfavorable
Compromising
because he thought of Drake instead of making him go bowling
Based on the scenario, Intack files a motion to have the
case moved to federal court in New Mexico in which they claim that New Jersey
lacks jurisdiction over the case in which made Intack not correct about their
claims as they don’t have significant amount of business in the New Jersey and
in addition, it could be expected that it is sued there.
