the buyer of call option______ the premium initially for the possibility of ____ an asset later for a price below its market price

Dozier's Horizon value is $60 million. The expected worth of a security or investment at some point in the future is known as a horizon value.

The worth of a security or asset at a specific future time is referred to as the horizon value or terminal value. For analysis and cash flow models, the horizon value is employed. Divide the annual cash flow by the discrepancy between the needed rate of return and the growth rate to determine the horizon value. The value of future cash flows that occur after a projection period of several years can be included, and many of the issues associated with valuing such cash flows are adequately resolved, thanks to the terminal value. In discounted cash flow analysis, the terminal value is determined using a stream of anticipated future free cash flows. There are two methods for determining the Terminal Value for whole-company valuation.

Horizon value = (Free cash flow for last year × Growth rate) ÷

(WACC - Growth rate)

It is given that free cash flow for last year = $40

Growth rate = 9% = 0.09

WACC = 15% = 0.15

Thus, Horizon value = (40 × 0.09) ÷ (0.15 - 0.09)

= 3.6 ÷ 0.06

= 60 million

To know more about Horizon value

https://brainly.com/question/24130873

#SPJ4

Due to covered interest arbitrage the financial markets should adjust the relationship between the interest rate differential of two currencies and the forward premium (or discount) on the forward exchange rate between the two currencies.

In a covered interest arbitrage trade, an investor uses a forward contract to cover exchange rate risk in order to profit from the difference in interest rates between two countries.

Covered interest arbitrage is one such trading method that is most frequently applied when trading currencies. Utilizing this interest arbitrage approach, you may profit from market fluctuations while also reducing the risk associated with the exchange rate between two currencies.

To know more about Covered Interest Arbitrage here

https://brainly.com/question/15519567

#SPJ4

1) Revenue minus labour and capital costs equals profit.

2) 45 bots can be made with a maximum of 5 units of capital.

1) It is important to remember that businesses aim to maximise the difference between total revenue and total cost when maximising their profits. Therefore, the area where TR - TC = Maximum or where Marginal Cost = Marginal Revenue of producing an additional unit occurs is where the maximum profit is made. (Bot in this instance)

Consequently, the response is:

Profit = Revenue - Labour Cost - Capital cost

2) Consider an output Y and a price P now.

Revenue R = Y * P

ΔR = ΔY * P (Given that P is constant.)

Since ΔY is now just MPK (as will be discussed below), the equation is now:

ΔR = MPK * P

It is obvious that businesses will increase labour and/or capital expenditures to increase profits until their marginal revenue exceeds their marginal cost. In this case, a company that seeks to maximise profits will keep producing until the value of additional output equals the cost of additional capital. Detailed Below

MPK extra units of output are produced by an Extra Unit of Capital.

This value = P * MPK

Cost of an additional unit of capital = r (rental rate)

P*MPK = r    OR    MPK = r/P

Equation Solution:

MPK = 14-K

r/P = 14-K

18 / 2 = 14-K     (R and P's values are provided in the question)

K = 14-9 = 5

As P*MPK = r over here, this indicates that at 5 units of capital, we have the most efficient use of capital. The company won't use more than 5 units of capital because at that point, MC will start to outweigh MR.

Now, keep in mind the following as well:

Output = Value Added = Income (Payments to the production's inputs)

Nominal value of output = P x Y = W N + R K = Wages + Total Profits

or: Y = (W/P) N + (R/P) K = w N+ r K (Where real wage and real rental rate are w and r, respectively.)

Here r = R/P = 18/2 = 9 (which, in essence, is MPK)

So we can take Y here. = (R/P) * K

which is equivalent to Y. = MPK * K

therefore Y = 9 * 5 = 45

Therefore, at a maximum quantity of 5 units of capital, 45 bots will be produced.

To know more about Revenue, refer to this link:

https://brainly.com/question/8645356

#SPJ4

Option B is correct. The payback period on this equipment is closest to 3.39 years

The payback period is basically the amount of time an investor needs to recover his/her initial investment.

lets assume initial investment = $1,000

when you calculate IRR, the present value of the cash flows = initial investment

the present value of an annuity for 4 years and 7% is 3

$1,000 = yearly cash flow x 3

yearly cash flow = $1,000 / 3 = $282

payback period = $1,000 / 282 = 3.388 years ≈ 3.39 years

Payback period in capital planning alludes to the time expected to recover the assets exhausted in a speculation, or to arrive at the make back the initial investment point. For instance, a $1000 venture made toward the beginning of year 1 which returned $500 toward the finish of year 1 and year 2 individually would have a two-year recompense period

Know more about the calculation of the payback period - https://brainly.com/question/16875879

#SPJ4

A perfectly competitive firm in the short run sells its product for a price that is less than the minimum point on its ATC curve then, b) some firms in this industry will exit the industry in the long run, and the exiting will continue until the market price increases and is equal to the break-even point on the ATC curve.

In this perfectly competitive industry, firms experience short-term economic losses if the price is below the average total cost. Over time, these low economic profits will cause some businesses to leave the market, until the businesses that remain generate no economic profits. This indicates that the price will be equal to the break-even point or the minimum point of the ATC curve.

To learn more about perfect competition refer here

https://brainly.com/question/15089288#
#SPJ4

Recapitalization tartan industries currently the current stock price is $16.99, stock price = current dividend per share *(1 + dividend growth rate) / (required return - dividend growth rate).

Recapitalization is the process of restructuring a corporation's debt and equity mixture, typically to stabilize a company's capital structure. the method in the main involves the exchange of 1 sort of finance for another, corresponding to removing preferred shares from the corporate's capital structure and replacing them with bonds.

Recapitalization may be a strategy a company will use to boost its money stability or overhaul its financial structure. To accomplish this, the company should change its debt-to-equity ratio by adding additional debt or more equity to its capital. When a company's debt decreases in proportion to its equity, it's less leverage. Its earnings per share (EPS) ought to decrease following the change.

Learn more about  Recapitalization  here: https://brainly.com/question/13872204

#SPJ4

fame quo in pricing seeks to preserve present prices or to meet the competition's prices.

Status quo pricing is a method the place corporations mimic the costs of their competitors or preserve modern fee points of similar merchandise or offerings on the market.

reactive advertising and marketing strategy characterised by means of a want to avoid war of words with competitors; the organization seeks to preserve matters in the enterprise the way they were, and hence avoid the highly-priced task on taking on a competitor directly.What enterprise makes use of repute quo pricing?

An often-cited instance of fame quo pricing is the soft drink industry. The fee of a bottle of soda tends to be fairly consistent, be it a Coca-Cola product or a Pepsi product. Other competitors, with much less company loyalty, may try discounted pricing, but Coca-Cola and Pepsi have a tendency to represent a reputation quo in pricing.

Learn more about  Status Quo Pricing  here:

A speculator tend to determine that a movement of FX rates was not related to prior exchange rate values.

If many speculators sell the currency in the forward market, this will then signal that the currency is considered to be overvalued, and people will begin selling the currency in the spot market. Thus, the speculators are people who tend to engage in speculative investments.

However, the speculation tends to involve trading a financial instrument which is involving high risk, in expectation of significant returns. Thus, the exchange rate fluctuations will affect the value of international investment.

Hence, the speculation is a risky investment strategy.

To learn more about the exchange rate here:

https://brainly.com/question/29804445

#SPJ4

The correct is resolution. The number of distinct pixels that can be displayed in each dimension is known as the display/screen resolution.

It can be a confusing term, especially since projection displays that use fixed picture-element arrays, flat-panel displays, including liquid-crystal displays, and cathode ray tube displays, all regulate resolution differently.

It is typically stated as width height, using pixels for the units.

One definition of display resolution is the actual number of columns and rows of pixels used to create the display.

This definition applies to fixed-pixel-array displays like plasma display panels (PDP), liquid crystal displays (LCD), projectors using digital light processing (DLP), OLED displays, and related technologies.

As a result of having a fixed-grid display, all displays require a "scaling engine" to adapt the incoming picture format to the display when using multi-format video inputs.

To know more about screen resolution, visit:-

https://brainly.com/question/8785762

#SPJ4

The total net income is $85000 as per the given information.

Contribution Format Segmented Income Statement

East Region | West Region | Total

Revenue           $625,000    |  $250,000    |  $875,000

Less: Variable Costs  $400,000    |  $160,000    |  $560,000

Contribution Margin  $225,000    |  $ 90,000    |  $315,000

Less: Fixed Costs    $150,000    |  $250,000    |  $400,000

Net Operating Income  $ 75,000   |  ($160,000)  |  ($ 85,000)

An income statement shows a company's revenues, expenses and profitability over a period of time. It is also sometimes called a profit-and-loss (P&L) statement or an earnings statement. It shows your: revenue from selling products or services.

To know more about income statement here

https://brainly.com/question/13625525

#SPJ4

Qualitative forecasting techniques are based on the judgment and opinion of experts and consumers and are only appropriate in the absence of historical data.

Market research, Delphi method, and informed opinion and judgment are a few examples of qualitative forecasting techniques. The qualitative forecasting methods that are most frequently employed are Delphi, market research, panel consensus, and visionary forecast. Sales teams utilize quantitative forecasting, a data-based statistical method, to analyze performance and project future sales based on past trends and data. Businesses may make educated judgments about strategies and procedures to ensure ongoing success by forecasting results.

Some of the most popular qualitative techniques are as follows: Observations: writing down in-depth field notes what you have observed, heard, or come across.

Learn more about Quantitative forecasting here: https://brainly.com/question/14683037

#SPJ4

Common stock, Additional Paid-In Capital, and treasury stock line items would be found on a statement of stockholders' equity that would not be on the statement of retained earnings.

Commonplace stock is a security that represents ownership in an agency. Holders of not-unusual inventory select the board of directors and vote on company regulations. This shape of equity possession generally yields higher fees for going back a long time. common inventory is more uncovered to the dangers of the business than bonds or favored inventory, it gives an extra capacity for capital appreciation. Over the long term, common shares have a tendency to outperform greater comfortable investments, despite their short-time period volatility.

The proprietors of common inventory no longer own any unique belongings of the corporation, which belong to all the shareholders is not unusual. An employer may issue both regular and choice stocks, wherein case the preference shareholders have precedence to get hold of dividends. in the occasion of liquidation, ordinary shareholders get hold of any ultimate funds after bondholders, lenders (along with employees), and preference shareholders are paid. while the liquidation occurs through financial disaster, the regular shareholders generally receive nothing.

To learn more about Common stock visit here:

brainly.com/question/13762106

#SPJ4

Accept a Hard Wake Up call The remedy, albeit hard to hear, is to reduce spending and/or boost my monthly income while you're in too little cash.

What are an example and income?

Income is the cash which an individual or company obtains in return for working, creating a good or service, or using capital. People normally make money through wages or salaries, whereas corporations make money by selling products or services for more than it costs to produce them.

What does income mean?

The sum of money, land, and other transfers of calculated value over a predetermined time frame in return for services or goods are often referred to as "income."

To know more about income visit:

https://brainly.com/question/14732695

#SPJ4

Conventional theories presume that financial backers are judicious and conduct finance assumes that they may not be reasonable.

Traditional finance expects that a financial backer might be an objective one that can cycle all data fair-mindedly. While conduct finance draws from certifiable experience expressing that a financial backer has predispositions, it's silly, and his feelings play an errand inside the unassuming speculations embraced.

The Traditional or regular money and financial matters worldview states. that protections' costs in monetary business sectors completely mirror their gamble and returns. In light of. their gamble resistance financial backers take positions in such protections by accurately dissecting them. Within social money, it is expected that monetary members are not entirely levelheaded and self-controlled yet rather mentally persuasive with to some degree typical and self-controlling propensities. Monetary direction frequently depends on the financial backer's psychological and actual well-being.

To learn more about financial theory here

https://brainly.com/question/9880948

#SPJ4

lower and middle management set strategic corporate goals is not one of the steps in the sequence.

The purpose of strategic controls is to direct the organisation in the direction of its long-term strategic goals.

After a strategy has been chosen, it is gradually put into practise to help a company navigate a quickly changing environment.

The assumptions made by management regarding a variety of yet-to-happen events form the basis of strategies, which are forward-looking.

A standard is used as a benchmark in traditional techniques to control. After finishing the task at hand, the manager assesses it and makes use of the results to guide subsequent efforts. Although not worthless, this tactic is not the best way to keep a strategy under control.

To know more about Strategic control here

https://brainly.com/question/16691030

#SPJ4

So, On Nov. 10 24,000 cash and  32,000 Treasury Stock would sld according to the given data.

The given data is,

purchased for cash 5,000 shares

share=$16

Apr. 2,

Treasury Stock = 16*5000=80,000

Cash= 80,000

June 10

Cash=3,000*19= 57,000

Paid-In Capital from Sale of Treasury Stock=3000*3=9,000

Treasury Stock =57,000-9,000

=48,000

Nov. 10

Cash =2000*12=24,000

Paid-In Capital from Sale of Treasury Stock=2000*4= 8,000

Treasury Stock =24,000+8,000

=32,000.

Here in question, On Apr. 2 Treasury Stock 80,000 and Cash 80,000 were sold.

(on June 10, Cash 57,000 sand Treasury Stock 48,000 were sold.

So, On Nov. 10 Cash 24,000 and Treasury Stock 32,000 would be sold according to above statements.

What Is Treasury Stock?

The number of shares outstanding on the open market declines as a result of issuing new shares, or reacquired stock.

Treasury stock denotes previously outstanding stock that the issuing business has acquired from stockholders.

Visit: here to know more about Treasury Stock: brainly.com/question/15852051

#SPJ4

(A) The insurance company paid 50% of any damages, so Q50% would provide the amount of investment that was purchased.

(B) The MC curve shifts downward and the equilibrium is at Q(discount) with 50% insurance and discounts.

A) The MB to the restaurant of investments in fire control technology would reduce by half, or the MB would be half as high at all levels of investment, if the insurance company paid 50% of any damages. Consequently, Q50% would provide the amount of investment that was purchased.

B) We can imagine that the MC to the company would be reduced if the insurance provider provided discounts to businesses that implemented fire suppression technologies. As a result, the MC curve shifts downward and the equilibrium is at Q(discount) with 50% insurance and discounts.

To learn more about Fire control technologies link is here

brainly.com/question/16695296

#SPJ4

The right question is given below:

Database reports are useful in many ways; one way a report is used is to provide details about individual records and to create labels.

A database report is the prepared output of a database query and includes information that may be used for analysis and decision-making. A reporting tool is typically included in good business applications; it consists of a front-end interface that calls or executes back-end database queries that have been structured for user-friendly application operation.

A database report can be divided into the following 3 categories:

Learn more about database reports here brainly.com/question/4252154

#SPJ4

Answer:

Selling an idea to a high-content versus low-content culture would involve emphasizing the substance and details of the idea in a high-content culture, while in a low-content culture the emphasis would be on the benefits and practical applications of the idea. In a high power distance culture, the emphasis would be on the expertise and authority of the person presenting the idea, while in a low power distance culture the emphasis would be on the idea itself and its potential benefits to the audience.

For example, if I were passionate about the idea of creating a community garden in my neighborhood, I might present the idea to a high-content culture by focusing on the specific plants and techniques that would be used in the garden, and how they would benefit the local ecosystem. In a low-content culture, I might focus on the potential health benefits of having access to fresh produce, and the potential for creating a sense of community among neighbors.

In a high power distance culture, I might present myself as an expert on gardening and emphasize my qualifications and experience, while in a low power distance culture I might focus on the idea itself and invite discussion and feedback from the audience.

Borah should recognize a net effect on 20a1 earnings of $5,000. The accounting risk of a company is addressed by balance sheet hedging because management want to remove accounting.

FX gains and losses from their financial statements. gains or losses on the remeasurement of financial assets and liabilities in foreign currencies. A net effect  called inventory turnover is used to gauge how effectively a company is controlling its stock levels. It is derived by dividing the accounting inventory for the period by the cost of goods sold for that period, and it shows how frequently the inventory changed hands during that time.

To learn more about accounting, click here.

https://brainly.com/question/22917325

#SPJ4

For control purposes, the quantities of materials ordered may be omitted from the copy of the purchase order that is d) Forwarded to the receiving department.

A purchase order is a commercial document, the first official offer from a buyer to a seller specifying the type, quantity and agreed price for products or services. Used to manage purchases of products and services from external suppliers. Orders may be an important part of ordering from your product management system. Orders are not contracts. In the absence of a prior agreement, a contract is formed between Buyer and Seller upon Seller's acceptance of the order.

The documents are Forwarded to the Receiving department and the  Goods receipt notifications are used to document the contents of shipments to our company. The form is completed by the company's receptionist who accepts the delivered goods. The following information is typically included in the receipt report:

The authorization order shipping document or number if provided on the box Condition of goods received. This could be a negative entry showing only damaged goods.

A master copy of each incoming report is kept in the receiving department. Copies are sent to other departments according to company procedures. A copy sent to Accounts Payable to document the receipt.

Learn more about purchase order:

https://brainly.com/question/14394210

#SPJ4

In comparison to the nation with the higher initial level of output per worker, the nation with the lower initial level of output per worker will see faster growth.

The Solow model states that while a higher population growth rate accelerates total production growth, it has no long-term effects on per-person output growth. As the pace of population growth increases, the steady-state level of per capita output declines.

The size of the country's population, the state of the world, international cooperation, the priorities the country has set for its economy, etc. are just a few of the many variables that affect economic development.

To know more about worker visit:-

https://brainly.com/question/29452935

#SPJ4

The competitive necessity to locate close to the right labor pool to benefit from low wage costs and/or skill levels is taken into account in facility location analysis. The statement is True.

Facility location analysis, also known as location-allocation analysis, distributes consumer demand to retail sites or distribution hubs while also identifying the ideal locations for a specified number of facilities based on a set of potential locations.

Facilities, competitiveness, logistics, labor, community and site, political risk, and incentives are the seven factors that affect a location decision in operations management, according to Reference for Business.

To know more about Facility location analysis, visit:

https://brainly.com/question/14233058

#SPJ1

The safety convenience of checks has made checkable deposits a large component of the M1 money supply.

M1 is the term used to describe the money supply, which is made up of cash, demand deposits, and other liquid deposits, such as savings accounts.

Because it encompasses assets and currencies that are either already cash or can be changed into it rapidly, M1 includes the parts of the money supply that are the most liquid.

Although they fall under M2 and M3, "near money" and "near, near money" cannot be changed to currency as rapidly.

Federal Reserve bills or paper money, as well as coins that are in use outside of the vaults of depository institutions and the Federal Reserve Banks, make up the M1 money supply. The most important element of a country's money supply is paper money.

To know more about money supply:

https://brainly.com/question/7319005

#SPJ4

It is false because buyers normally tend to have higher Bargaining power.

Bargaining power is the relative capability of parties in an argumentative situation to ply influence over each other. However, also they will have equal logrolling power, similar to an impeccably competitive request If both parties are on an equal footing in a debate.

If buyers are more concentrated than merchandisers – if there are many buyers and numerous merchandisers – also buyer power is high. It is the pressure that consumers put on businesses.

Whereas, if switching costs – the cost of switching from one dealer's product to another dealer's product – are low, the logrolling power of buyers is high.

To know more about Bargaining power,

brainly.com/question/26500183

#SPJ4

The essential goal of monetary administration is to maximize the contemporary fee of the existing stock. Any administration action that is opposite to this purpose would be an suited answer.

List three decisions that a economic supervisor makes that would fall below the category of working capital management.

In easy terms, economic management is the business characteristic that deals with investing the on hand financial resources in a way that larger commercial enterprise success and return-on-investment (ROI) is achieved. Financial management specialists plan, organize and control all transactions in a business.

Financial administration instance for enterprise or corporation consists of managing smartphone cost, hiring a new employee, purchasing of facilities, undertaking budgets, etc. Financial management instance for folks consists of managing month-to-month budgets, expenses, shopping, etc.

Learn more about financial management here:

Edward asked her firm's advertising agency to estimate firm's IMC message and what percentage of the target audience was exposed to the message. Edward is asking for frequency and reach data.

The distinct reach and frequency metrics keep track of both the overall number of viewers and the frequency of exposure to an advertisement.

These statistics reflect the number of times an advertisement was viewed by individuals across formats, various devices, and networks, going beyond mere cookie analytics.

As a result, Edward is using frequency and reach data in this instance by asking her company's advertising agency to determine the frequency of consumer exposure to the message and the proportion of the target population that was exposed to it.

To know more about Frequency data visit:

https://brainly.com/question/29378297

#SPJ4

The least appropriate items for which to use long-term credit are consumable goods such as pizzas, restaurant meals, and travel.

These items are not considered to be investments and will not increase in value over time. Luxury items, such as vacations, jewelry, and designer clothes are also included. Additionally, they do not provide any tangible return on the money invested. For this reason, it is not advisable to use long-term credit to purchase consumable goods.

Long-term credit is a loan that is taken out for a period of more than one year, usually for five years or more. It is typically used for large purchases such as real estate or business expansion. Long-term credit is typically taken out from a bank or other financial institution, and the terms of the loan are negotiated between the borrower and the lender.

For more questions like Long term credit  click the link below:

https://brainly.com/question/20099257

#SPJ4

Inventory is controlled in a Kanban system because production occurs at an upstream resource only when it has an empty container.

The Kanban system is a process management tool that visualizes the status of each job on a company's radar and controls the flow of production from clients' requests back to the warehouse. The Kanban system offers a visual representation to manage and keep track of work as it goes ahead through a process. The word 'kanban' is Japanese translated to mean 'card you can see.'

You can learn more about Kanban system at

https://brainly.com/question/13094028

#SPJ4

• Contractors working in the construction and extraction industries accounted for more than half (54 percent) of all fatal occupational injuries. Construction and extraction workers made for 17% of all fatal occupational injuries among all workers, contractors included.

•Compared to 4 percent of all fatal occupational injuries, 15% of contractor fatal workplace injuries included construction workers.

•In 2011, contractors accounted for more than half of all structural iron and steel workers and electricians (56 percent and 52 percent, respectively).

•Falls to a lower level were a factor in nearly a third (31%) of fatal workplace accidents involving contractors.

•Of the 72 pedestrian vehicular events, 28 involved being struck by a vehicle that was backing up and 44 happened in a work zone.

•Of the 69 "hit by item" cases, nine contractors died after being tragically struck by trees in 2011.

•Of the 58 cases of electricity exposure, 41 of the deceased were exposed to more than 220 volts of electricity, and 31 of the decedents had direct touch with the electrified object.

•Forklifts were used in four of the 32 non-roadway occurrences.

Visit here to learn more about contractors: https://brainly.com/question/14497625

#SPJ4