Answer:
$9.86
Explanation:
Calculation for the call option on the stock
Call option=$100−($100/1.05)−($2/1.05)+$7
Call option=$100−$95.238−$1.91+$7
Call option= $9.86
Therefore what must be the price of a 1-year at-the-money European call option on the stock is $9.86
The following information about the payroll for the week ended December 30 was obtained from the records of Pharrell Co.:
Salaries:
Sales salaries $402,000
Warehouse salaries 210,000
Office salaries 165,000
$777,000
Deductions:
Income tax withheld $135,975
Social security tax withheld 46,620
Medicare tax withheld 11,655
Retirement savings 17,094
Group insurance 13,986
$225,330
Tax rates assumed:
Social security 6%
Medicare 1.5%
State unemployment (employer only) 5.4%
Federal unemployment (employer only) 0.6%
Required:
1. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles):
A. December 30, to record the payroll.
B. December 30, to record the employer's payroll taxes on the payroll to be paid on December 31. Of the total payroll for the last week of the year, $40,000 is subject to unemployment compensation taxes.
2. Assuming that the payroll for the last week of the year is to be paid on January 5 of the following fiscal year, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles):
A. On page 11 of the journal: December 30, to record the payroll.
B. On page 12 of the journal: January 5, to record the employer's payroll taxes on the payroll to be paid on January 5. Because it is a new fiscal year, all salaries are subject to unemployment compensation taxes.
Answer:
1) December 30, 202x, wages expense
Dr Wages expense 777,000
Cr Federal income taxes withheld payable 135,975
Cr OASDI taxes withheld payable 46,620
Cr Medicare taxes withheld payable 11,655
Cr Retirement savings (401k) payable 17,094
Cr Group insurance payable 11,655
Cr Wages payable 551,670
December 30, 202x, payroll tax expense
Dr OASDI taxes expense 46,620
Dr Medicare taxes expense 11,655
Dr FUTA taxes expense 240
Dr SUTA taxes expense 2,160
Cr OASDI taxes payable 46,620
Cr Medicare taxes payable 11,655
Cr FUTA taxes payable 240
Cr SUTA taxes payable 2,160
2) December 30, 202x, wages expense
Dr Wages expense 777,000
Cr Federal income taxes withheld payable 135,975
Cr OASDI taxes withheld payable 46,620
Cr Medicare taxes withheld payable 11,655
Cr Retirement savings (401k) payable 17,094
Cr Group insurance payable 11,655
Cr Wages payable 551,670
January 5, 202y, payroll tax expense
Dr OASDI taxes expense 46,620
Dr Medicare taxes expense 11,655
Dr FUTA taxes expense 4,662
Dr SUTA taxes expense 41,958
Cr OASDI taxes payable 46,620
Cr Medicare taxes payable 11,655
Cr FUTA taxes payable 4,662
Cr SUTA taxes payable 41,958
In the Frankfurt market, Aldi stock closed at €5 per share. On the same day, the euro-U.S. dollar spot exchange rate was €.625/$1.00. Aldi trades as an ADR in the OTC market in the United States. Five underlying Aldi shares are packaged into one ADR. The no-arbitrage U.S. price of one ADR is:_______. A) €25.00. B) $15.63. C) $40.00. D) none of the options
Answer:
B) $15.63
Explanation:
Calculation for the no-arbitrage U.S. price of one ADR
First step is to calculate the Equivalent amount of one ADR in euro
Equivalent amount of one ADR in euro = 5 ×€5
Equivalent amount of one ADR in euro = €25
Now let calculate the Dollar value of one ADR
Dollar value of one ADR = €25* €625/1,000
Dollar value of one ADR=€15,625/1,000
Dollar value of one ADR=$15.63
Therefore the no-arbitrage U.S. price of one ADR is:$15.63
An analyst has modeled the stock of Crisp Trucking using a two-factor APT model. The riskfree rate is 6%, the expected return on the first factor r1 is 12%, and the expected return on the second factor r2 is 8%. If bi1 0 7 and bi2 0 9, what is Crisp’s required return? Brigham, Eugene F.; Ehrhardt, Michael C.. Financial Management: Theory & Practice (p. 1011). Cengage Learning. Kindle Edition.
Answer: 12%
Explanation:
Using CAPM, the required return can be found.
required return = risk free rate + beta * market premium
Find the market premium for each factor;
First factor = Expected return - risk free rate
= 12% - 6%
= 6%
Second factor = 8% - 6%
= 2%
In this case each factor has its own beta and market premium so this will have to be accounted for in the CAPM formula as such;
= risk free rate + (beta for r1 * market premium r1) + (beta r2 * market premium r2)
= 6% + (0.7 * 6%) + (0.9 * 2%)
= 12%
i. Examine the current process design of that product or service in alliance with the 4 vs model and illustrate the operational process by using either a Flow Chart or Value Stream Map technique.
Explanation:
junior bro
then am gointo reply it again
HomeFront Construction Company built large, single-family homes for 25 years. Then there was a shift toward more demand for small luxury condominiums, and HomeFront changed its focus. The change in demand could be explained by:_____
a. the increasing number of senior citizens who are "empty-nesters."
b. the fact that consumers in urban areas generally have higher incomes.
c. the increasing number of 45-64 year olds whose children are grown.
d. All of these explanations could be relevant.
Answer:
d. All of these explanations could be relevant.
Explanation:
Change in demand for small luxury condominiums, from large single family homes could be : due to any of these three reasons - changing 'taste & preferences' of people
Increase in senior citizen (old parents) , whose children have moved away from home. So, they might feel settling in community apartments better rather than full lonely homes (without children) Urban area aged people tend to have higher income & financial base for purchasing luxury condominiumsI NEED HELP!! THIS IS SO CONFUSING!!
Explanation:
AD decreas price level increases and real GDP increase
what would be the danger of predicting the number of new subscriptions for a month in which 2,000 hours were spent on telemarketing
Answer:
The main danger that could pose to predicting the number of new subscriptions for a month in which 2,000 hours were spent on telemarketing would be not to consider the cost of said hours of telemarketing when considering the benefits obtained through the new subscriptions.
Thus, if the economic benefits resulting from the subscriptions were considered without subtracting the cost of the telemarketing hours, the accounting of the company's gross profits would be incorrectly recorded, incurring an error that would generate a higher tax burden for the company.
If your firm expects the euro to substantially depreciate, it could speculate by ____ euro call options or ____ euros forward in the forward exchange market.
a. selling; selling
b. selling; purchasing
c. purchasing; purchasing
d. purchasing; selling
Answer: selling; selling
Explanation:
If a particular firm expects the euro to depreciate, that is the value of the euro will be reduced, such firm will speculate by selling the euro call options or selling the euros forward in the forward exchange market.
This is because such firm will try as much as possible to make as much gain and when there's a speculation about decrease in value, the firm will sell the euro call options.
How many times did Donald trump declare bankruptcy
Answer:
6 times
Explanation:
According to Google
Answer:
Well Donald J. Trump has never filed for personal bankruptcy BUT, hotels and casino businesses of his have declared bankruptcy, This happened about 6 timesExplanation:
PLz mark me Brainllest :)have a nice dayDoes anyone know quick ways to make money.
Answer:
Sell products online.
Sell used books on Amazon.
Start a Shopify ecommerce store.
Build a free-plus-shipping ecommerce sales funnel.
Do gigs on Fiverr.
Sell services on Upwork or 99Designs.
Build a high-ticket coaching or consulting funnel.
Answer:
robbing banks, helping out, picking pockets, digging under sofas for lost change, yard sales, bake sales, birthdays, helping out, selling things such as clothes you don't want or need, begging, advertizing, fund raisers, getting a summer job, etc.
Caribou Gold Mining Corporation is expected to pay a dividend of $4 in the upcoming year. Dividends are expected to decline at the rate of 3% per year. The risk-free rate of return is 5%, and the expected return on the market portfolio is 13%. The stock of Caribou Gold Mining Corporation has a beta of 0.5. Using the CAPM, the return you should require on the stock is _________.
Answer:
r = 0.09 or 9%
Explanation:
Using the CAPM, we can calculate the required rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.
The formula for required rate of return under CAPM is,
r = rRF + Beta * (rM - rRF)
Where,
rRF is the risk free rate rM is the market returnr = 0.05 + 0.5 * (0.13 - 0.05)
r = 0.09 or 9%
11. What percentage of your salary should go to savings? (1 point)
05%
O 10%
O 20%
O 50%
Answer:
20%
Explanation:
Answer: 10%
Explanation: Took test
A closed economy has income of $1,000, government spending of $200, taxes of $150, and investment of $250. What is private saving?
a. $100
b. $200
c. $300
d. $400
Answer: c. $300
Explanation:
Private Saving is income less taxes and consumption so is calculated by the formula;
= Y - C - T
= Income - Consumption - Taxes
Find Consumption
Y - C - G = I
Income - Consumption - Government spending = Investment
1,000 - C - 200 = 250
C = 1,000 - 200 - 250
C = $550
Private Saving is therefore;
= 1,000 - 550 - 150
= $300
Alice just won the lottery and is trying to decide between the options of receiving the annual cash flow payment option of $370,000 per year for 20 years beginning today, or receiving one lump-sum amount today. Mary Alice can earn 4% investing this money. At what lump-sum payment amount would she be indifferent between the two alternatives?
Answer:
the lumpsum payment amount that should be indifferent between the two alternatives is $5,028,411
Explanation:
The computation of the lumpsum payment amount that should be indifferent between the two alternatives is shown below:
Lumpsum amount is
= $370,000 × PVIFA at (4%,20)
= $370,000 × 13.5903
=$5,028,411
Hence, the lumpsum payment amount that should be indifferent between the two alternatives is $5,028,411
The same is to be considered
what time will we know who won the election?
Answer:
So since many people voted by mail, we may not know till friday, they need to gather everyones mail and obviously since its paper its going to take a while but remember to please vite blue!
The top salary you can make.
A) Career
B) Productivity
C) Earning potential
D) Human capital
Answer:
earning potential
Explanation:
Earning potential refers to the potential gains from dividend payments and capital appreciation shareholders might earn from holding a stock. In other words, it reflects the largest possible profit that a corporation can make
Raymond purchased a utility trailer on 2/18/2018. The trailer was delivered on 3/10/2018. He added side rails and a lift to the bed of the trailer. The work was completed and the trailer ready for use on 4/2/2018. What is the date placed in service?
a. 02/18/2018
b. 03/10/2018
c. 04/02/2018
d. 01/01/2018
Answer:
B. 03/10/2018
Explanation:
The date placed in service is 03/10/2018 since this was the date that this trailer or machine was delivered for use according to the question.
The date in service can be defined to be the date that an inventory item such as this machine was made available for service or in other words made available for use. We use this date to calculate the depreciation on the serial inventory.
Answer:
i think its d
Explanation:
If demand for a good falls, but the opportunity cost of making the good increases, then production of the good will:________
a. increase
b. decrease
c. stay the same '
If demand for a good falls, but the opportunity cost of making the good increases, the production of the good will increase.
What takes place to the opportunity fee as manufacturing of an excellent increase?
The regulation of increasing opportunity expenses states that as you increase manufacturing of 1 top, the opportunity cost to produce an additional suitable will grow.
What is meant with the aid of growing possibility price?The law of growing possibility fee is an economic precept that describes how opportunity charges boom as resources are carried out.
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Viva, Inc. bought machine X for two years ago. The machine had no residual value and had an estimated useful life of 10 years. If the company uses the straightline depreciation method, calculate the current book value of the machine.
Answer:
the current book value of the machine is $14,400
Explanation:
The computation of the current book value of the machine is shown below:
The Annual Depreciation is
= (Cost - Salvage Value) ÷ (Useful Life)
= ($18,000 - 0) ÷ 10 years
= $1,800
Now the depreciation for two years is
= $1,800 × 2
= $3,600
So, the current book value is
= Cost - accumulated depreciation
= $18,000 - $3,600
= $14,400
Hence, the current book value of the machine is $14,400
Short-run projected wealth levels calculated using geometric averages are probably ______________.
a. pessimistic
b. optimistic.
c. foolish.
d. erroneous.
e. confusing.
Answer:
A. pessimistic
Explanation:
A short run project usually does not take time and runs for a short period od time. The geometric average return answers the question what was your average compounded return per year over a particular period. To be pessimistic is said to be when an individual do see the worst of things or believe that the worst will always happen.
Bonner company paid $855,000 for a tract of land which included a warehouse and office building. The land, warehouse and office building originally cost $280,000, $180,000, and $340,000 respectively and the current assessed values are $300,000, $200,000, and $400,000 respectively. How should Bonner calculate what value to record for Land?
a. 300,000/ 800,000 x 855,000
b. 280,000/900,000 x 855,000
c. 280,000 /800,000 x 855,000
d. 300,000/900,000 x 855,000
Answer:
Bonner Company
Bonner should calculate the value to record for Land as follows:
d. 300,000/900,000 x 855,000
Explanation:
The Land should be recorded at $285,000 based on the above mentioned formula. The formula considers the current assessed value of the Land versus the amount paid by Bonner for the group of assets (Land, Warehouse and Office Buildings). The computation of the value at which to record the Land and other assets must be proportional to the current assessed values.
The plant and production benchmark data on p.6 of each issue of the Footwear Industry Report
A. Provide valuable feedback to company managers regarding whether the prices being charged for the company's branded footwear are too hight or too low.
B. are especially helpful to company managers in determining whether their company is overspending on advertising.
C. are primarily useful to managers in determining whether their company's total manufacturing costs are low enough to enable the company to meet or beat the EPS targets established by investors.
Answer:
A. Provide valuable feedback to company managers regarding whether the prices being charged for the company's branded footwear are too hight or too low.
Explanation:
Benchmarking is used by companies to compare products, processes, and prices with others in the industry. This ensures that the company maintains competitive edge that is on par with others in the industry.
In the given scenario benchmarking will help a company know if the price they are charging for their footwear is high or low compared to other companies offering similar services.
In a competitive market if the price offered by one supplier is high compared to others they will move to a cheaper supplier. So it is important to maintain a price that will attract customers
Reports are aimed at helping decision-makers to find out if their policies are right or not. The plant and production benchmark data on p.6 of each issue of the Footwear Industry Report;
A. Provide valuable feedback to company managers regarding whether the prices being charged for the company's branded footwear are too high or too low.On page 6 of the Footwear Industry Report, we see a table that shows us the price range and daily units of production of footwear.
The number of exports is also recorded. With this, managers can determine whether the prices are high or low based on exports.
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Tropical Resort, Inc.'s bonds currently sell for $1,350 and have a par value of $1,000. They pay an 11% coupon rate with interest paid semi–annually, and have a 15-year maturity, but they can be called in 7 years at $1,125. What is their yield to call (YTC)?
Answer:
Their yield to call is 8.672%
Explanation:
The rate of return bondholders receives on a callable bond until the call date is called Yield to call.
Use following formula to calculate the yield to call
Yield to Call = [ C + ( F - P ) / n ] / [ (F + P ) / 2 ]
Where
C = Coupon Payment = $1,000 x 11% x 6/12 = $55
F = Face value = $1,000
P = Call price = $1,125
n -= number of periods to call = 7 years x 2 = 14 periods
Yield to Call = [ $55 + ( $1,000 - $1,125 ) / 14 ] / [ ( $1,000 + $1,125 ) / 2 ]
Yield to Call = 46.07 / $1,062
Yield to Call = 0.04336
Yield to Call = 4.336% semiannually
Yield to Call = 4.336% x 2
Yield to Call = 8.672% annually
Which type of borrowing option would most likely result in the borrower
paying the highest amount of interest?
A. A card with a low compound interest rate
B. A card with a high compound interest rate
C. A card with a low simple interest rate
D. A card with a high simple interest rate
Answer:
B. A card with a high compound interest rate
Explanation:
A.P.E.X
Even if a company has accurate sales forecast information calculated from multiple methods and based on solid data, the company should:
Answer:
prepare for multiple possible scenarios so it can react to whatever happens in the market
Explanation:
Sales forecast is a method of predicting futures sales volumes and patterns. It is used by businesses to make informed decisions on resource allocation.
Sales forecast determines short term and long term performance of the business.
However having accurate sales forecast information calculated from multiple methods and based on solid data does not give full assurance based on fluctuating market forces.
The business will need to prepare for multiple possible scenarios so it can react to whatever happens in the market.
A company should be prepared by ensuring proactiveness to other possible
conditions not contained in the forecast.
A company having accurate sales forecast information calculated from
multiple methods and based on solid data doesn't guarantee that deviations
can't occur. Sales information can only be forecasted and other activities can alter the speculated sales information.
For example, the lockdown during the cov-id era caused most
shops to be shut down as a result of the self isolation carried out in
respective homes. This is a deviation in the norm and companies who
weren't prepared for it ran into debts and became liquidated.
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Write an essay about the effect of cost and production on our economy.
Answer:
Costs and production are both very important for the economy.
Explanation:
Costs are the values of the goods and services used for the production of other goods and services. For example, for the production of a chair, we must factor the cost of the raw material: wood, and the cost of direct labor: the wage of the carpenter.
Costs therefore, are crucial in determining the amount of output in an economy.
Cost also determine help determine the market structure of the economy. In general terms, when costs are high, profits are lower, which attracts less firms to the sector, and results in less competitive market structures such as oligopoly or monopoly.
The opposite is true when costs are low, because in this situation profits are likely to be higher, which attracts more firms to the sector, resulting in more competitive market structures like perfect competition or monopolistic competition.
Finally, we can say that the production of goods and services is important because it is the most important factor in determining the living standars of people in an economy. When many goods and services are produced, people obtain higher incomes because they are paid for the production of these goods and services.
Jamison owns a rental cabin in Mammoth, and travels there for maintenance three times a year, between January and June. The round trip to Mammoth from San Diego where Jamison lives, is approximately 405 miles. How much travel costs can Jamison deduct per year related to his rental cabin?
a. $248
b. $686
c. $743
d. $1,352
Answer:
686
Explanation:
The question says that he travels to the cabin 3 times a year.
The trip to where cabin is located is 405 miles
We are to solve for the Amount of deduction allowed to Jamison for him to maintain his cabin.
The Amount of deduction = Total number of Miles travelled multiplied by 0.565
405 x3x$0.565 = $686.
So the correct answer is option b.
The difference between the rate charged to borrowers and the rate paid to depositors is known as the interest rate ______.
Answer:
The right approach is "spread".
Explanation:
The variation between the expected production a financial institution generates from loan payments among several other interests accumulating operations as well as the average rate everything just ends up paying on deposit accounts as well as borrowings seems to be the total rate of interest spread. An important aspect including its profitability of such a finance company seems to be the aggregate rate.So that's the right response earlier in this thread.
Question 9 OTTU
Which of the following is not affected by a person's credit score?
A. Credit card rates
B. Federal income tax
C. Apartment rent
D. Ability to get a cell phone contract
Lexi buys a food processor and uses it without any problems. She loans the processor to Jill, and Jill is injured when a part flies off the machine. If the former rule of privity of contract were in place, which of the following would be true?
Answer:
Jill cannot hold the manufacturer responsible for her injury.
Explanation:
The above question is incomplete as there are several answer options which are listed below;
• Jill can hold the manufacturer liable for her injury as long as Lexi was in the room when she got
• Jill can hold the manufacturer liable for her injury
• Jill cannot hold the manufacturer responsible for her injury
• Lexi can hold the manufacturer liable for Jill's injury.
The above answer - Jill cannot hold the manufacturer responsible for her injury, is true according to the rule of privity of contract. The rule states that a person who is not a party to a contract does not have right to sue or be sued and to enforce the obligations arising from the contract, unlike a person who is a party to the contract.
With regards to the above scenario, Lexi, who buys a food processor is the party to the contract here, hence can sue and be sued in case of any injury suffered by her, however, Jill whom food processor was loaned to, is the third party here, hence not covered by the rule of privity of contract.