An investor purchases a long call at a price of $3.05. The strike price at expiration is $46. If the current stock price is $46.10, what is the break-even point for the investor?a. $32.50
b. $35.00
c. $37.50
d. $37.60

Answers

Answer 1
Answer:

Answer: $49.05

Explanation:

The call was purchased at $3.05 and the strike price at expiration is $46. The total expenses at expiration is:

= 46 + 3.05

= $49.05

To make a profit, the stock price will have to be above $49.05 which makes it the breakeven point.

Option not included.


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M Corporation has provided the following data concerning an investment project that it is considering: Initial investment $ 380,000 Annual cash flow $ 133,000 per year Expected life of the project 4 years Discount rate 13 % Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided. The net present value of the project is closest to:

An Engel curve:________. A. slopes upward for normal goods and downward for inferior goods.
B. slopes upward for inferior goods and downward for normal goods.
C. slopes downward for both normal and inferior goods.
D. slopes upward for both normal and inferior goods.

Answers

Answer:

A. slopes upward for normal goods and downward for inferior goods.

Explanation:

In the case of Engle curve it plots the relationship between income and demand for a good.

In the case of the normal goods, as the income rises the demand also rises while on the other hand in the case of inferior goods, the income rises the demand false

So it sloped upward for the normal goods and slop downwards for the inferior goods  

Final answer:

An Engel curve shows the relationship between the quantity of a good consumed and a consumer's income. It slopes upward for normal goods and downward for inferior goods.

Explanation:

An Engel curve shows the relationship between the quantity of a good consumed and a consumer's income. It helps us understand how the demand for a particular good changes as income levels vary.

The correct answer to the question is A. An Engel curve slopes upward for normal goods and downward for inferior goods. This means that as income increases, the demand for normal goods also increases, while the demand for inferior goods decreases.

For example, if someone's income increases, they may choose to consume more high-quality goods like organic food instead of cheaper alternatives. This would result in an upward-sloping Engel curve for organic food, indicating that it is a normal good.

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The Food and Drug Administration is targeting salt in processed foods as a health hazard, and some experts believe the agency will require food manufacturers to limit the amount of salt in processed foods. However, the reduction will occur in phases, with salt content being reduced in steps so that consumers will be weaned off of salt gradually. Carefully controlled research studies are underway in which the salt levels are varied and consumers' reactions to the taste are measured. This research is an example of:________ a) causal research
b) conditional research
c) exploratory research
d) objective research
e) descriptive research

Answers

Answer:

d) objective research

Explanation:

We need to note that mention was made that the research was "Carefully controlled." Been carefully controlled shows that the research has an objective.

Furthermore, measuring the reactions of consumers at different salt levels makes the research factual and thus a decision could be made from the findings.

Final answer:

The research being conducted on salt levels in processed foods and consumers' reactions to taste is an example of descriptive research.

Explanation:

The research being conducted, in which salt levels in processed foods are varied and consumers' reactions to taste are measured, is an example of descriptive research. Descriptive research is aimed at describing or characterizing a phenomenon or group of phenomena and does not give explanations for the observed phenomena. In this case, the research is focused on describing the impact of varying salt levels on consumers' reactions to taste, without attempting to establish causal relationships or explanations for those reactions.

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_______ is the phenomenon of the shifting of individual management styles to become more similar to one another.

Answers

Answer:

Convergence

Explanation:

Convergence meaning that the two different entities are coming together. It is also defined as the tendency of the group members to become more alike. It is also known as the company culture, in the sense, that the people who work there, tend to have the similar characteristics.

Therefore, the convergence is the phenomenon which states the shifting of the styles of the individual management in order to become more similar to one another.

Esquire Comic Book Company had income before tax of $1,400,000 in 2021 before considering the following material items: Esquire sold one of its operating divisions, which qualified as a separate component according to generally accepted accounting principles. The before-tax loss on disposal was $380,000. The division generated before-tax income from operations from the beginning of the year through disposal of $580,000. The company incurred restructuring costs of $95,000 during the year. Required: Prepare a 2021 income statement for Esquire beginning with income from continuing operations. Assume an income tax rate of 25%. Ignore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.)

Answers

Answer:

Income statement is prepared below.

Explanation:

Partial income statement

income from continuing operations              =      978,750

Discontinued operations:

income from operations of discontinued component     = 200,000

income tax expenses 25% of 200,000        =    -50000

income from operations of discontinued component     =150000

Net income      =    1,128,750

Income from continuing operations

income before additional items  =   1,400,000

less: restructuring cost     -95000

Income before tax     =   1305,000

less: tax 25%    =    -326,250

Income from continuing operations    =   978,750

Assume a​ Cobb-Douglas production function of the​ form: q equals 10 Upper L Superscript 0.97 Baseline Upper K Superscript 0.18. What type of returns to scaleLOADING... does this production function​ exhibit? In this​ instance, returns to scale equal nothing. ​ (Enter a numeric response using a real number rounded to two decimal​ places.) This production function exhibits A. decreasing returns to scale. B. constant returns to scale. C. initially increasing but then constant returns to scale. D. initially constant but then increasing returns to scale. E. increasing returns to scale.

Answers

Answer:

Returns to scale = 1.15

Increasing returns to scale.

Explanation:

Cobb-Douglas production function of the​ form:

q=10(L)^(0.97)(K)^(0.18)

Here, we are using a simple rule of factors to find the returns to scale:

q=10(tL)^(0.97)(tK)^(0.18)

q=10(t)^(0.97+0.18) (L)^(0.97)(K)^(0.18)

q=10(t)^(1.15) (L)^(0.97)(K)^(0.18)

Hence,

By adding up the powers of L and K, we can get the returns to scale.

Returns to scale = 1.15

Suppose, the power of L be 'a' and the power of K is 'b',

if a + b = 1, then it exhibits constant returns to scale

if a + b > 1, then it exhibits increasing returns to scale

if a + b < 1, then it exhibits decreasing returns to scale.

In our case,

a + b = 1.15 which is greater than 1, so this production function exhibits increasing returns to scale.

The problem-based ideation process begins with: a. the selection of one or more problem identification techniques. b. a study of the situation. c. the development of concept statements for further evaluation. d. the creation of a list of potential problems.

Answers

Answer: b. A study of the situation

Explanation: The problem-based ideation process is characterized by a workflow that begins with the study of a situation, to use of various techniques of problem identification, to screening of the resulting problems, and ends in development of concept statements for final evaluation. The aim is to generate a large quantity of ideas that can then filtered through and the best, most practical or most innovative solutions are selected.