Answer:
FV= $21,887.13
Explanation:
Giving the following information:
Initial investment= $15,000
Number of periods= 6 years
Interest rate= 6.5% compounded annually
T<u>o calculate the future value of the investment, we need to use the following formula:</u>
FV= PV*(1+i)^n
FV= 15,000*(1.065^6)
FV= $21,887.13
Answer:
c. The return on total assets
Explanation:
The inventory turnover deals with the turnover of inventory during the period i.e in how many times the inventory is sold or rejected or replaced, etc
The quick ratio checks the liquidity position of the company
The return on total assets refers to the profit gains on the total assets average
And, the fixed charge coverage ratio shows the payment of its all debts with the available earnings
So for earning profits, the return on total assets is a better option
Answer:
$14.73
Explanation:
Given that, there is a 50 - 50 chance that a call option will either increase or decrease ;
Exercise price = $109
Increase price = $142
Decrease price = $76
Using the two state stock price model :
Increase price - exercise price ; 142 - 109 = $33
Decrease price - exercise price ; 76 - 109 - $33
We calculate the mean, expected value of winning after one year,
E(X) = Σx*p(x)
Since call won't be exercised if price decrease, then - 33 = 0
x : ___ 33 _____ 0
p(x) : _ 0.5 ____ 0.5
E(X) = (33*0.5) + (0*0.5)
E(X) = 16.5
The present value, PV = Expected winning / (1 + r)
PV = 16.5 / (1 + 0.12) = 16.5 / 1.12 = 14.73
Mixed is the most common type of economy today.
