BUSINESS COLLEGE

The current exchange rate of dollars to euros is $18/€11.The risk free rate for dollars is r = 3%. The risk free rate for euros is re = 4%. The dollar denominated price of an option to purchase €22 for $32 in six months is $5.09. Determine the euro denominated price of a put option to sell $22 in six months using the given strike. (Hint: the strike comes from the statement €22 for $32.)

Answers

Answer 1

Answer:

Answer:

wow simple

Explanation:

so simple

just a little tricky

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Mitchell Company was authorized to issue 50,000 shares of common stock. The company issued 27,000 shares of stock and later purchased 5,000 shares of treasury stock. The number of outstanding shares of common stock is: A. 45,000. B. 28,000. C. 22,000. D. 17,000.

Answers

Answer:

C. 22,000.

Explanation:

The company issued just 27,000 shares of the total autorized, before of reaquired the stocks these was the outstanding shares of common stock.

But later they decided to repurchased 5,000 shares this transcation in the open market it's known as treasury stock.

The company reacquired a portion of previously issued shares, in this case , 27,000 outstanding shares minus 5,000 shares repurchased by the company.

Last month, Price Company purchased supplies on account, $5,000. Today, Price Company pays the amount that is owed.Required: What is the effect of this transaction on individual asset accounts, individual liability accounts, the Capital Stock account, and the Retained Earnings account?

Check all that apply.

An asset account increases. An asset account decreases.

A liability account increases. A liability account decreases.

Capital Stock increases. Capital Stock decreases.

Retained Earnings increase. Retained Earnings decrease.

Answers

Answer:

Asset Account is decreased.

Liability Account is also decreased.

No effects on Capital Stock.

No effects on Retained Earnings.

Explanation:

Asset Account is decreased by $5000 because Cash is paid for the purchases made on account last month.

Liability Account is decreased by $5000 because accounts payable for the purchases made In the last month is now paid.

This transaction will have no effects on Capital Stock Account and Retained Earnings Account.

Each of the following are classified as a noncash investing or financing activity except: a. retirement of debt by issuing stock
b. reissuing treasury stock
c. purchase of long-term assets by issuing bonds
d. purchase of noncash assets by issuing equity

Answers

Answer: b. reissuing treasury stock

Explanation:

Investing Activities in the Cashflow Statement refer to transactions that have to do with the buying and selling of Capital Goods such as Fixed Assets. It also refers to investments in other company bonds and stock.

Financing has to do with how the firm finances it's operations. These include long term debt and stock related transactions.

When these transactions are non-cash, it means quite rightly that no cash was exchanged and instead something else for exchanged instead of cash. For example, A non-cash Investing and Financing activity would be the purchase of long-term assets by issuing bonds.

In this question, option B being the reissuance of Treasury Stock is not a non-cash transaction. Treasury Stock is the company's own stock that it required from the market. By reissuing it, they will be doing so with cash involved. That is, people will buy the reissued shares and pay cash for them thus making it a Cash Financing Activity.

In 2009, a computer manufacturer had a labor productivity of 3.33 units per labor hour. In 2010, the computer manufacturer had a labor productivity of 4.27 units per labor hour. The percent change in labor productivity is:

Answers

Answer:

The percent change in labor productivity is 22%

Explanation:

Listing out the parameters given:

labor productivity (2009) = 3.33 units/hr,

labor productivity (2010) = 4.27 units/hr

To calculate the percent change in labor productivity, we have it thu:

percent change in labor productivity = [labor productivity (2010) - labor productivity (2009)] ÷ labor productivity (2010)

Let's assume 'Labor productivity' = LP

%Δ in LP = $(LP _2_0_1_0 - LP _2_0_0_9)/(LP _2_0_1_0)$ * 100% = $(4.27 - 3.33)/(4.27)$ * 100%

%Δ in LP = $(0.94)/(4.27)$ * 100% = 22%

%Δ in LP = 22%

This shows an increase in computer manufacturing from 2009 to 2010 by 22%

Answer:

percentage change in labor productivity = 28.23%

Explanation:

In 2009 the computer manufacturer had a labor productivity of 3.33 units per labor hour. In 2010 the productivity increased to 4.27 units per labor hour.

The percentage change in labor productivity can be calculated as

change in labor productivity = New labor productivity - Old labor productivity

percentage change in labor productivity = change in labor productivity/old labor productivity × 100

Old labor productivity = 3.33 unit

New labor productivity = 4.27 unit

change in labor productivity = 4.27 - 3.33 = 0.94

percentage change in labor productivity = 0.94/3.33 × 100

percentage change in labor productivity = 94/3.33

percentage change in labor productivity = 28.2282282282

percentage change in labor productivity = 28.23%

9. Suppose an investor has two choices:Choice 1: invest in a Bond A which is a 2-year bond with an interest rate of 12% Choice B: two 1-year bonds with sequential interest payment of 10% and 14%?Which Choice would produce a greater return if the pure expectations theory was to hold true. *A) Choice A
B) Choice B
C) Both of the choices would produce the same return
D) We can’t tell.

Answers

Answer:

the answer is (C) both of the choices would produce the same return

Suppose you buy lunch for $15.40 that includes a 8% sales tax. How much did the restaurant charge you for the lunch (excluding any tax) and how much does the restaurant owe for sales tax?a. $16.10 for lunch and $1.19 for sales tax.b. $14.81 for lunch and $1.29 for sales tax.c. $16.10 for lunch and $1.29 for sales tax.d. $14.91 for lunch and $1.19 for sales tax.