Answer:
$1,534.372
Explanation:
The computation of the expected level of the index in one year is shown below:
= Current index level × 1 + expected rate of return on the market - expected future value of the dividend paid over the next year
= $1,433 × (1 + 8.4%) - $19
= $1,553.372 - $19
= $1,534.372
We simply applied the above formula so that the expected level of the index in one year could come
Answer:
600 loss
Explanation:
The computation of the gain or loss is shown below:
Since on Jan, there is a put option of 45 at $3 and the market rises to $58
So it losses by 13 points i.e
= 45 - 58
= 13
Now the total premium points collected is of 7 i.e
= 4 + 3
= 7
So, the remaining points left is
= 13 - 7
= 6
So for 6 points, the net loss is $600
Answer:
Gross Impressions
Explanation:
Gross impressions represent the total number of households or individuals that is represented by a given media schedule. It is the impression that an advertisement gets. It is the total sum of audiences that is individuals or households that is exposed to the same commercial or program on multiple occasions. It is different to gross rating points. The latter deals with the number of impressions while the former deals with the number of audiences.
In this case, gross impressions
= Audience × number of ads
= 115000 × 16
= 1840000
Answer:
The correct answer for option (a) is $1.6 per share and for option (b) is decrease in cash and retained earning.
Explanation:
According to the scenario, the computation for the given data are as follows:
(a) We can calculate the amount that firm can pay in cash dividend by using following formula:
Amount to pay in cash dividend = $40,000 ÷ 25,000
= $1.6 per share
(b). If the cash dividend is $0.80 per share than the cash and retained earning can be calculated as follows:
Cash and retained earning = $0.80 × 25,000 = $20,000
As $20,000 is less than previous, than it will decrease the cash and retained earning.
