Answer:
Market capitalization - $155.26
Stock price - $26.77
Explanation:
The computation of the market capitalization is shown below:
= last year dividend × (1 + growth rate) ÷ (cost of capital - growth rate)
= $5.18 billion × ( 1 + 7.9%) ÷ (11.5% - 7.9%)
= $5.58,922 billion ÷ 3.6%
= $155.26
And, the stock price would be
= Market capitalization ÷ outstanding shares
= $155.26 ÷ 5.8 billion
= $26.77
A call bond option is termed as the option that implies the bondholder the right to purchase the bonds at the prevailing price in the market. A buyer of a bond call option in the secondary market forecasts a drop in investment substantial rise in bond prices.
The correct option is a. I, II, and III only
Option a. I, II, and III only is correct because The contract value will decline as it reaches maturation because it will become less unpredictable.
The goal of purchasing a call option is to benefit if the price of the underlying stock rises. The attractiveness of the callable bond falls as the price of bitcoin declines, and the worth of the call option reduces as well.
The exercise price is the price where the individual who acquires a call option will be able to acquire the underlying shares. If this price is too high, the benefit from buying the stock at maturity will be too little, diminishing the value of the specified call option.
To know more about the listed call option, refer to the link below:
Answer: a. I, II, and III only
Explanation:
The exercise price refers to the amount that the person who buys the call option will get to buy the underlying stock at. If this price is high, the profit from buying the stock at maturity will be less so the value of the listed call option reduces.
As the contract approaches maturity, the value will decrease because it will be less volatile as it approaches maturity.
The purpose of buying a call option is so that a profit can be made if the underlying stock increases in value. If the stock decreases in value, the allure of the call option decreases so therefore will the value.
Answer:
Option D is correct one.
Saving plus net taxes equals planned investment plus government purchases.
Explanation:
Total spending equals total output if and only if leakages are equal to injections—that is, only if the sum of saving and net taxes is equal to the sum of planned investment spending and government purchases.
Answer:
D. only when the sum of saving and investment equals the sum of net taxes and government expenditures
Explanation:
Based on the scenario being said in the question where it is asked that which total spending will equal total, that will happen only when the sum of the savings and investment.
Total spending can only equals total output if and only if leakages will be equal to injections, in other words, only if the sum of saving and net taxes (addition of Saving and Nets) is equal to the sum of planned investment spending and government purchases (addition of planned investment and government purchases.)
Answer:
The correct option is B. $1,012,303
Explanation:
For computing the net amount, the following calculations are need to be done which is shown below:
1. Calculation the total value of bond which equals to
= Issue amount × price
= $1,042,000 × (97 ÷ 100)
= $1,010,740
2. Now compute the discount which shown below:
= Issue amount - total value
= $1,042,000 - $1,010,740
= $31,260
3. Then, compute the semiannual discount amount by applying the straight line method
= Discount value ÷ number of years
where,
number of year would be multiply by 2 = 2 × 10 = 20 years
So, the value would be equal to
= $31,260 ÷ 20 years
= $1,563
4. So, the net amount would be
= Total value of bond + semiannual discount
= $1,010,740 + $1,563
= $1,012,303
Hence, the net amount will be reported for the bonds on the August 31, 2019 balance sheet is $1,012,303
Therefore, the correct option is B. $1,012,303
Answer:
If disposable income increases by $5 billion and consumer spending ... spending by $100 billion and the marginal propensity to consume is 0.8. ... Suppose investment spending increases by $50 billion, and as a result real GDP increases by $200 billion. ... deliberate changes in taxation and/or government spending.
Explanation:
Answer: D. $480,000.
Explanation: OCF ( operating cash flow) is usually calculated using the following formula: Operating Cash Flows = Net income + Noncash Expenses ( Depreciation Expense) + Changes in Working Capital.
Net income =$380,000
Depreciation = $70,000
Increase in accounts = $30,000
OCF = $380,000 + $70,000 + $30,000
= $480,000
Answer:
Cashflow statement gives the true state of affairs of a business with respect to cash and cash equivalent. Whereas a company may report good profit, it may be running an unhealthy business because of its poor management of cash resources. As a result, such a business may run into troubles.
Cash from operating Activities is a healthy way of evaluating the core operations of the business, to make good investment judgment around the profit reported.
Net Income = $380,000
Add Depreciation (non- cash expense) = $70,000
Deduct Increase in Accounts receivables (non-cash income) = $30,000
Cash from operations = $420,000.