One half of 1% converted to a decimal is

Answers

Answer 1
To convert one half of 1% to a decimal, you can divide the percentage by 100. One percent is equal to 0.01, so one half of 1% is equal to 0.01/2 = 0.005

Related Questions

PLEASE ANSWER QUICKLY I WILL DO BRAINLIEST!!!
1 3/8 + 2 1/4 + 2 1/2 + 2 7/8 + 3 1/4 + 3 1/9

Answers

Answer:

553/36 or 15 13/36

Explanation:

First change all to improper fractions with same denominator:

1 3/8 = 11/8

2 1/4 = 9/4

2 1/2 = 5/2

2 7/8 = 23/8

3 1/4 = 13/4

3 1/9 = 28/9

so the common denominator is 72

and then i did some math off the side ( i gtg soon so ill explain steps when i come back)

after you add all of them together you get 1106/72 which simplifies to 553/36 or 15 13/36

what is business and what are the four resources a business needs in order to be successful ​

Answers

Answer: Business is an organized effort of individuals to produce and sell, for a profit, the goods and services that satisfy society's needs. The four resources are Human resources, material resources, informational resources, and financial resources.

Explanation: Business is the practice of making one's living or making money by producing or buying and selling products (such as goods and services). It is also "any activity or enterprise entered into for profit

Hope this was helpful

A 10-K financial report must be filed if a
company has $10 million in
A. assets
B. stocks
C. liabilities

Answers

The answer is a. Assets

Note that common skills are listed toward the top and less common skills are listed toward the bottom. According to O*NET, what are some common skills needed by Registered Nurses? Check all that apply.

coordination
social perceptiveness
active listening
equipment selection
equipment maintenance
installation

Answers

Coordination
Social perceptiveness
Active listening

owner's equity may be affected by all of the following except:

Answers

Answer: a. the purchase of a personal automobile by the owner using personal funds.

Explanation:

If the owner of a business purchases a car with their own funds, this does not impart equity or indeed any other portion of the business as this is a personal transaction that does not involve the business.

Purchasing a car for the owner's son with cash generated for the business will affect Equity by reducing it. Investment by owners will increase equity and a sale of goods will increase revenue which will affect equity via the net income.

if the annual rate is 2.5% and there are 12 periods per year, what is the rate per period? a. 0.208%, b. 0.28%, c. 0.38%, d. 0.5%
The answer: b. 0.28% is wrong

Answers

A. Because 2.5/ 12 = 0.208

The management of Petro Garcia Inc. was discussing whether certain equipment should be written off as a charge to current operations because of obsolescence. This equipment has a cost of $900,000 with depreciation to date of $400,000 as of December 31, 2020. On December 31, 2020, management projected its future net cash flows from this equipment to be $300,000 and its fair value to be $230,000. The company intends to use this equipment in the future. Prepare the journal entry (if any) to record the impairment at December 31, 2020

Answers

Answer:

Dec 31,2020

Dr Loss on impairment $270,000

Cr Accumulated depreciation-Equipment $270,000

Explanation:

Preparation of the journal entry to record the impairment at December 31, 2020

First step is to calculate the Loss on impairment

Cost $900,000

Less: Accumulated depreciation ($400,000)

Carrying Amount $500,000

Less: Fair value ($230,000)

Loss on impairment $270,000

Now let Prepare the journal entry

Dec 31,2020

Dr Loss on impairment $270,000

Cr Accumulated depreciation-Equipment $270,000

(To record the impairment)

Why do diverse teams succeed?

Answers

Answer:

because they're are many different people with different religions, relationships, and backgrounds. having a diverse team opens up many opportunities for the team it's self to learn how to help each other. For example if someone is just new to America and moved from let's say Germany they have more knowledge on the team about international ski teams and what to expect. so the team would succeed by working together with the information they were given.

Are equipment and supplies expenses that would be included on an income statement, I’m lost trying to create a balance sheet, income statement and owners equity with these figures!

Answers

Yes. Equipment and supplies expenses would be included on a company's income statement. This is because they are considered expenses since the company is purchasing them with the intent to use the items for a finite period of time and the costs will be recognized over time. Assets, on the other hand, would refer to items that the company has purchased with the intent on using or selling the items for an indefinite period of time.

ASSETS RETURN MILLION$ LIABILITIES AND EQUITY COST MILLION$
cash 0.00% $35 fixed-rate deposits 3.50% $240
investments(<1year) 4.00% $200 rate-sensitive deposits 2.00% $260
short-term loans(<1 year)6.00% $225 fed fund borrovigs 2.50% $25
long-term fixed rate loans (maturity>1 year) 6.75% $250 long-term borrowing fixed rate(maturity>1year) 5.50% $119
Total $710 equity $66
total $710
A bank has the following balance sheet:
Calculate the bank's one-year repricing gap (in millions of $).
Also, if interest rates decline by 100 basis points, estimate the change in the bank’s NII over the year.

Answers

Answer:

Following are the responses to the given choices:

Explanation:

Please find the complete question:

1-year distance recovery = sensitive resources rate - liabilities sensitive rate

Rate sensitive assets = investments(<1 year) + short-term loans(<1 year)[tex]=\$(200+225)\ mn \\\\= \$425\ mn[/tex]

Dependent Rate=sensitive rate of deposits+ fed fund borrowing

[tex]=\$(260+25) \ million\\\\ = \$285 \ million.[/tex]

The difference in replicating gaps:

[tex]= \$(425-285)\ million\\\\=\$140 \ million[/tex]

If interest rates decline by 1%, net income becomes down [tex]\$140\ million \times 1\% = \$14 \ million[/tex]

Santiago Incorporated has a constructing company in which he does major constructing jobs and also leases his heavy-duty equipment to help supplement his income. His cash account is very important in the running of both of his businesses as he uses the accrual basis of accounting . What method would you suggest that Jay Santiago use for recording cash flow from operating activities and why?

Answers

Answer:

"Direct Method" is the right answer.

Explanation:

The direct approach provides a clearer overview of how a company receives currency. And therefore it is regarded as equivalent to the alternative manner.Compared to the price of something like the money market account throughout the particular circumstance, the above direct method of registering cash balance somewhat from operations would be advised.

mention the different types of industries

Answers

Answer: There are basically three types of industries present in the different businesses I the nation for it's economic development. They are as follows :

1. Primary Industries
2. Secondary Industries
3. Tertiary Industries

Explanation: Now, let’s have a look at the three different types of industries in detail.


Primary Industries

Primary industry includes the economy that uses natural resources from the environment such as forestry, agriculture, fisheries and mining.Usually, this particular sector is considered the most crucial in developing countries and is relatively smaller in developed countries.

For developing countries, primary industry is typically the largest sector, such as livestock in Africa.Similarly, Wales as a whole is mainly dependent on mining and is the major source of the economy. It is the only sector where all of Wales can survive.

Secondary Industries

The secondary industry consists primarily of the construction and manufacturing industries. This industry generally uses products from the primary industry to create many other utilitarian products and also for their sales and exports.Many of these industries produce a great deal of waste that can lead to significant environmental problems and pollution.

Tertiary Industries

The tertiary industry mainly consists of the service sector. It typically involves multiple activities in which employees contribute their expertise and knowledge to improve productivity, potential, performance and sustainability.The most prominent feature of the tertiary sector is the production of multiple natural services including advice, mentoring, experience, access and discussion.Services also include the distribution, transportation and sale of goods through various channels from manufacturers to consumers.

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On a business's income statement, inventory affects

Answers

On a business's income statement, inventory affects the balance of retained earnings on the statement of retained earnings.

What is income ?Income refers to the consumption and savings opportunity that a business captures within a specific time duration.Income is difficult to define conceptually and its definition varies from region to region. The term "revenue" generally refers to the transfer of money, property, and other  value received over a  period of time in exchange for services or products. Income is defined according to the context in which the term is used. At the most basic level, income can be categorized as the money a person makes. Income can be received from a variety of areas. Wages, dividends, self-employment, etc. Income can be divided into two main categories: taxable income and non-taxable income.

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Answer: net income

Explanation: just took the quix

Working with people includes careers such as child care workers, social workers, and doctors.
O True
False

Answers

Answer:

I think false

Explanation:

because basta

False. Working with people does not necessarily include only careers such as child care workers, social workers, and doctors. There are many other careers that involve working with people, such as teachers, counselors, nurses, and customer service representatives.

Justin Company's budget includes the following credit sales for the current year: September, $40,000; October, $51,000; November, $45,000; December, $47,000. Credit sales are collected as follows: 15% in the month of sale, 60% in the first month after sale, 20% in the second month after sale, and 5% is uncollectible. How much cash can Justin expect to collect in November as a result of current and past credit sales

Answers

Answer:

$45,350

Explanation:

Follow the Company`s collection history to determine the November Cash Collection.

November Cash Collection :

Collected in month of sale - 15% x $45,000                       $6,750

Collected for 1st month after sale - 60% x $51,000         $30,600

Collected for 2nd month after sale - 20% x $40,000        $8,000

Total                                                                                     $45,350

Therefore,

The cash Justin can expect to collect in November is $45,350

Which of the following best describes a way to use your website to improve the guest experience?

A personal call to the room after check-in to welcome guests
Easy-to-navigate menus with clear shortcuts for booking
Opportunities to accumulate user-generated content
Use of digital key cards for contactless check-in and room entry

Answers

The most effective strategy to use your website to enhance the visitor experience is to provide opportunities for user-generated material to gather. As a result, choice (C) is appropriate.

What is meant by guest experience?

The interactions you have with your visitors from the time they arrive until they check out are referred to as the guest experience. This phrase is frequently used in the hospitality sector to describe how well your customers are treated.

A positive guest experience is at the very heart of hospitality. Additionally, it should be a key component of your hotel's operations since, if done well, it will encourage clients to leave favorable internet reviews and even become devoted regulars.

Hence, option (C) is accurate.

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Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $40,000 and a remaining useful life of four years, at which time its salvage value will be zero. It has a current market value of $50,000. Variable manufacturing costs are $33,700 per year for this machine. Information on two alternative replacement machines follows. Alternative A Alternative B Cost$121,000 $118,000 Variable manufacturing costs per year 22,000 10,800 Calculate the total change in net income if Alternative A, B is adopted. Should Xinhong keep or replace its manufacturing machine

Answers

Answer:

Xinhong Company

                                              Alternative A   Alternative B

1. If Alternative 2 is adopted,

the change in net income        ($8,550)            $3,400

2. Xinhong should replace its manufacturing machine with Alternative B.

Explanation:

a) Data and Calculations:

                                               Old Machine              Alternatives 2

                                                                       Alternative A   Alternative B

Book value                               $40,000

Current market value                50,000          $121,000           $118,000

Variable manufacturing cost     33,700             22,000              10,800

Useful life                                  4 years          4 years              4 years

Straight-line Depreciation exp. 10,000             30,250             29,500

Total annual costs                  $43,700           $52,250          $40,300

If Alternative 2 is adopted,

the change in net income                              ($8,550)            $3,400

With Alternative A, the change = reduced net income by $8,550 ($52,250 - $43,700)

With Alternative B, the change = increased net income by $3,400 ($43,700 - $40,300)

Suppose the current yield on a​ one-year zero-coupon bond is 4%, while the yield on a​ five-year zero-coupon bond is 6% Neither bond has any risk of default. Suppose you plan to invest for one year. You will earn more over the year by investing in the​ five-year bond as long as its yield does not rise above what​ level? ​ (Assume $1 face value​ bond.) ​Hint: It is best not to round intermediate calculationsmake sure to carry at least four decimal places in intermediate calculations.

Answers

Answer:

is the question multiple choices or no

The Hershey Company uses the weighted-average method in its process costing system. The following data concern the operations of the company's first processing department for a recent month.
Work in process, beginning:
Units in process 3,750
Percent complete with respect to materials 80%
Percent complete with respect to conversion 20%
Costs in the beginning inventory:
Materials cost $6,711.00
Conversion cost $2,885.00
Units started into production during the month 21,400
Units completed and transferred out
Costs added to production during the month:
Materials cost $61,906
Conversion cost CA I Costs added to production during the month:
Materials cost $61,906
Conversion cost $543,602
Work in process, ending:
Units in process 900
Percent complete with respect to materials 66%
Percent complete with respect to conversion 48%
Required:
a. Determine the equivalent units of production for material and conversion.
b. Determine the costs per equivalent unit for material and conversion.
c. Determine the cost of ending work in process inventory.
d. Determine the cost of the units transferred to the next department.

Answers

Answer:

The Hershey Company

                                                               Materials       Conversion

a. The equivalent units of production     24,844             24,632

b. Costs per equivalent unit                   $2.762           $22.186

c. The cost of ending work in process inventory is:

= $11,224.98

d. The cost of the units transferred to the next department is:

= $604,989

Explanation:

a) Data and Calculations:

                                                      Units     Materials       Conversion

Beginning work in process          3,750          80%                20%

Units started in the month         21,400

Units to be accounted for          25,150

Ending work in process                 900          66%                48%

Units completed/transferred   24,250         100%               100%

Equivalent units of production:

                                                      Units     Materials       Conversion

Units completed/transferred   24,250       24,250          24,250

Ending work in process                900             594                432

Total equivalent units                                  24,844           24,632

Costs of production               Materials         Conversion     Total

Costs of beginning WIP            $6,711              $2,885        $9,586

Costs added during month     61,906           543,602      605,508

Total costs of production      $68,617         $546,487     $615,094

Cost per equivalent unit:

Total costs of production      $68,617         $546,487

Total equivalent units             24,844             24,632

Cost per equivalent unit        $2.762           $22.186

Costs assigned to:

                                                      Materials       Conversion             Total

Units completed/transferred      $66,978.50     $538,010.50      $604,989

                                                (24,250 *$2.762)  (24,250 * $22.186)

Ending work in process                   1,640.63      $9,584.35         $11,224.98

                                                (594 * $2.762)           (432 * $22.186)

Suppose Mike wants to pay efficiency wages to help in the construction of his beach home. If the prevailing wage rate for electricians is $30 per hour in his area, he will probably pay
a. $33
b. $18
c. $26
d. the minimum wage

Answers

Answer:

The answer to the question is c

Mike will probably pay $33 per hour because efficiency wage theory advocates that the paying your workers higher than the market wage for their role in order to improve their productivity. So, the correct option is (A).

What do you understand by the Efficiency wage theory?

According to the efficiency wage principle, employers should pay their employees well enough to encourage productivity and keep highly competent people on staff.

Efficiency wages are a level of pay given to employees above the minimum wage in labor economics in order to keep a skilled and productive workforce.

Efficiency wage theory contends that these higher rates really raise overall productivity and profitability for a firm over the long term, which helps to explain why businesses appear to overpay for workers.

Therefore, Mike will probably pay $33 per hour because efficiency wage theory advocates that the paying your workers higher than the market wage for their role in order to improve their productivity.

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Process or Sell Product A is produced for $3.32 per pound. Product A can be sold without additional processing for $4.25 per pound or processed further into Product B at an additional cost of $0.4 per pound. Product B can be sold for $4.56 per pound. Prepare a differential analysis dated November 15 on whether to sell A (Alternative 1) or process further into B (Alternative 2). If required, round your answers to the nearest whole dollar. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Answers

Answer and Explanation:

The preparation of the differential analysis is presented below;

Particulars         Sell product A               Product B further     Difference

Revenue

per pound               $4.25                           $4.56                   $0.31

Cost per pound      $3.32                           $3.72                   $0.4

                                                     ($3.32 + $0.4)

Income cost

per pound             $0.93                            $0.84                  -$0.09

So it would be sell off as the firm would be facing a loss of $0.09 per pound

The following is a partially completed departmental expense allocation spreadsheet for Brickland. It reports the total amounts of direct and indirect expenses for its four departments. Purchasing department expenses are allocated to the operating departments on the basis of purchase orders. Maintenance department expenses are allocated based on square footage. Compute the amount of Maintenance department expense to be allocated to Fabrication. (Do not round your intermediate calculations.) Purchasing Maintenance Fabrication Assembly Operating costs $ 35,000 $ 19,800 $ 99,000 $ 65,000 No. of purchase orders 16 4 Sq. ft. of space 3,450 2,5

Answers

Answer:

$8,319

Explanation:

Computation for the amount of Maintenance department expense to be allocated to Fabrication

First step is to calculate the total sum of square foot space

Using this formula

Total sum of square foot space = Fabrication square foot space + assembly square foot space

Let plug in the formula

Total sum of square foot space= 3,450 + 2,500

Total sum of square foot space= 5,950

Now let calculate the amount of Maintenance department expense to be allocated to Fabrication

Maintenance department expense = $ 19,800 × 2,500 ÷ 5,950

Maintenance department expense = $ 19,800 × 0.42017

Maintenance department expense = $8,319

Therefore the amount of Maintenance department expense to be allocated to Fabrication is $8,319

Which of the following are components of the SQ Tool?

Resource plan
SQ Plan
SQ Healthcheck
Engagement agreement

Answers

The engagement agreement of the following are components of the SQ Tool. The correct option is D.

What are squares tools used for?

Two straightedges placed at a right angle to one another form a square for measurement purposes. Carpenters and machinists use it to locate holes, locate holes, and check that right angles are correct. It can also be used as a guide to drawing lines on materials before cutting them.

Due to this, they make up two of the SAQ's components. As an auditor, you are responsible not only to yourself but also to your team, the organization, and our stakeholders. Accountability is about professional pride and people taking ownership of their work.

Thus, the ideal selection is option D.

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We are evaluating a project that costs $1.68 million, has a six-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 90,000 units per year. Price per unit is $37.95, variable cost per unit is $23.20, and fixed costs are $815,000 per year. The tax rate is 21 percent, and we require a return of 11 percent on this project. Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within ±10 percent.

Required:
Calculate the best-case and worst-case NPV figures.

Answers

Answer:

                              Best-Case        Worst-Case

                                  NPV                     NPV

PV of cash inflows $2,897,706      $3,187,477

PV of project cost  $1,680,000     $1,848,000 ($1,680,000 * 1.1)

NPV                         $1,217,706    $1,339,477

Explanation:

a) Data and Calculations:

Initial project cost = $1.68 million

Project's estimated life = 6 years

Salvage value = $0

Depreciation expense = $280,000 ($1.68 million/6)

Income Statement:

Sales revenue (90,000 * $37.95) = $3,415,500

Cost of goods sold:

Variable cost (90,000 * $23.20) =    2,088,000

Gross profit =                                    $1,327,500

Fixed costs =                                         815,000

Income before tax =                           $512,500

Income tax (21% of $512,500) =          107,625

Net income =                                     $404,875

Add depreciation expense                280,000

Annual cash inflows =                      $684,875

PV annuity factor for 6 years at 11% = 4.231

PV of annual cash inflows of $684,875= $2,897,706 ($684,875 * 4.231)

Annual cash inflows = $753,363 ($684,875 * 1.1)

PV of annual cash inflows of $753,363 = $3,187,477 ($753,363 * 4.231)

what is federal housing administration?

Answers

The Federal Housing Administration (FHA) is a U.S. government agency that provides mortgage insurance on mortgages made by FHA-approved lenders. The FHA was created in 1934 as part of the National Housing Act, and its purpose is to provide mortgage insurance on loans made by private lenders for the purchase of homes. This insurance helps to protect the lender against loss if the borrower defaults on the loan, and it allows borrowers who might not otherwise qualify for a conventional mortgage to purchase a home. The FHA does not actually make loans, but instead it insures mortgages made by private lenders, meaning that if the borrower defaults on the loan, the FHA will pay the lender.

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Nichols Enterprises has an investment in 31,000 bonds of Elliott Electronics that Nichols accounts for as a security available-for-sale. Elliott bonds are publicly traded, and The Wall Street Journal quotes a price for those bonds of $12 per bond, but Nichols believes the market has not appreciated the full value of the Elliott bonds and that a more accurate price is $19 per bond. Nichols should carry the Elliott investment on its balance sheet at:

Answers

Answer:

the nichols should carry the elliott investment on the balance sheet is of $372,000

Explanation:

The computation is shown below;

= Number of bonds × price per bond

= 31,000 bonds × $12

= $372,000

Simply we multiply the no of bonds with the price per bond so that the correct amount could come

Hence, the nichols should carry the elliott investment on the balance sheet is of $372,000

Question

You are International Business Manager at a UK based company. Your company has identified USA and Europe as potential markets and wish to expand asap and plans a full-scale expansion. You are requested to analyse both projects and advise.

In considering such large project, you must work out the risk of each project, cost of capital and NPV. Allocate discount rate for each project according to current international business climate and justify why you allocated the discount rate for each region. Discuss how you aim to manage international risks.

Projected cash flows in respective currencies:

Year Net Cash Flow – USA USD Net Cash Flow - Europe EUR
0 -20 million -20 million
1 2 million 2 million
2 4 million 3 million
3 5 million 4 million
4 6 million 8 million
5 8 million 8 million

Instructions:
a. Briefly discuss viability of both projects in today’s global business context. Based on your discussion allocate and justify discount rate for both projects. (30 Marks)
b. How much investment (GBP) is needed for each project and what is the NPV of each project? Use spot and forward exchange rates to discuss. (30 Marks)
c. Considering current world economic climate, the future exchange rates are uncertain. How would you analyse/anticipate the change in exchange rates? Write a brief proposal to mitigate impact of possible exchange rate fluctuations (30 Marks)
d. Discuss your calculations and advise which project should be selected. (10 Marks)

(Total up to 1000 words + calculations = 1500 Words)

Answers

Answer:

a. Viability of both projects in today’s global business context:

In order to determine the viability of expanding into the USA and Europe, it is important to consider the current global business context. One factor to consider is the economic climate in each region. If the economy is strong and growing, it may be a good time to expand as there may be more demand for the company's products or services. On the other hand, if the economy is struggling or in a downturn, it may be more risky to expand as there may be less demand for the company's products or services.

Another factor to consider is the competitive landscape in each region. If the market is already saturated with similar products or services, it may be more difficult for the company to break into the market and achieve success. On the other hand, if there is less competition or a gap in the market, the company may have a better chance of success.

Based on the projected cash flows for each region, it appears that both the USA and Europe could be viable markets for the company to expand into. The projected cash flows for both regions show steady growth over the next five years, indicating potential demand for the company's products or services. However, without further information on the economic and competitive landscape in each region, it is difficult to fully assess the viability of each project.

In terms of allocating a discount rate for each project, the discount rate is used to determine the present value of the projected cash flows. A higher discount rate indicates a higher level of risk, and therefore a lower present value of the projected cash flows. A lower discount rate indicates a lower level of risk, and therefore a higher present value of the projected cash flows.

Given the information provided, it is difficult to determine the specific discount rate that should be applied to each project. However, some factors to consider in allocating the discount rate for each region could include the economic climate, the level of competition, and any specific risks associated with expanding into each region. For example, if the economic climate in the USA is stronger than in Europe, or if there is less competition in the USA, the discount rate for the USA expansion project may be lower than the discount rate for the Europe expansion project.

b. Investment and NPV of each project:

To determine the investment needed for each project, we need to first convert the projected cash flows for each region into GBP using the current spot exchange rate. We can then use these converted cash flows to calculate the NPV of each project using the allocated discount rate.

Assuming the current spot exchange rate for USD to GBP is 0.78, and the current spot exchange rate for EUR to GBP is 0.87, the projected cash flows for each region in GBP would be as follows:

Year Net Cash Flow - USA (GBP) Net Cash Flow - Europe (GBP)

0 -15.6 million -17.4 million

1 1.6 million 1.7 million

2 3.2 million 2.6 million

3 4.0 million 3.5 million

4 4.8 million 6.9 million

5 6.4 million 6.9 million

To calculate the NPV of each project, we need to allocate a discount rate for each region. As mentioned previously, the specific discount rate will depend on the economic and competitive landscape in each region, as well as any specific risks associated with expanding into each region.

For the purposes of this analysis, let's assume a discount rate of 8% for the USA expansion project and 10% for the Europe expansion project. Using these discount rates, the NPV of each project would be as follows:

The current global business environment must be taken into account when evaluating whether expanding into the USA and Europe will be profitable.

What is discount rate ?

The state of each region's economy should be taken into account. If the economy is robust and expanding, it might be a good idea to grow because there might be higher demand for the firm's goods or services. On the other hand, if the economy is struggling or going through a downturn, expanding your business could be riskier because there might be less of a market for your company's goods or services.

The level of competition in each region is another thing to take into account. It could be more challenging for the business to succeed if the market is already saturated with comparable goods or services.enter the market and succeed. On the other hand, the company may have a better chance of success if there is less competition or a gap in the market.

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A stock is trading at $58. You believe there is a 70% chance the price of the stock will increase by 10% over the next 3 months. You believe there is a 20% chance the stock will drop by 10%, and you think there is only a 10% chance of a major drop in price of 20%. At-the-money 3-month puts are available at a cost of $730 per contract. What is the expected dollar profit for a writer of a naked put at the end of 3 months?

Answers

Answer: $498

Explanation:

A Put is an option that will only be exercised if the price of the underlying security which is the stock in this case, falls below the current price of $58.

This means that we will not include the 70% chance of increase in our calculation.

In a contract, there are 100 shares.

Expected profit = Contract price - (Prob. of dropping by 10% * 10% of stock) - (Prob. of dropping by 20% * 20% of stock)

= 730 - ( 20% * 10% * 58 * 100) - (10% * 20% * 58 * 100)

= 730 - 116 - 116

= $498

A restaurant is for sale for $200,000. It is estimated that the restaurant will earn $20,000 a year for the next 15 years. At the end of 15 years, it is estimated that the restaurant will sell for $350,000. Which of the following would be MOST LIKELY to occur if the investors required rate of return is 15 percent?
a. Investor would pursue the project
b. Investor would not pursue the project
c. Investor would pursue the project if the holding period were longer than 15 years
d. Not enough information provided

Answers

Answer:

B

Explanation:

to determine of the investor would pursue the project, we need to determine the value of the net present value

Net present value is the present value of after-tax cash flows from an investment less the amount invested.  

NPV can be calculated using a financial calculator  

Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.  

When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable.

Cash flow in year 0 = $-200,000

Cash flow in year 1 - 14 = 20,000

Cash flow in year 15 = 20,000 + $350,000

I = 15%

NPV = -40,039.53

The npv is negative and the project should not be undertaken

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

-40,039.53

HELP
Which of the following is not true of how you should give directions to a visitor or guest?

You should create a mental picture of the entire route in your mind and picture yourself walking or driving it along with the guest.
You should give a travel time estimate for the whole trip from start to finish instead of from landmark to landmark, since that gets confusing.
You should give your guest the simplest route, not the quickest, because you don't want them to get lost along the way.
You should ask the customer to repeat the directions back to you so you can make sure they have understood them properly.

Answers

Answer:

The statement "You should give your guest the simplest route, not the quickest, because you don't want them to get lost along the way." is not true. It is usually best to give the quickest route to the destination, as long as it is not too complicated or confusing. It is important to provide clear and concise directions to help the guest arrive at their destination efficiently and without getting lost. However, if the quickest route is very complicated or difficult to follow, it may be more helpful to provide a simpler route that is easier for the guest to understand and follow. Asking the guest to repeat the directions back to you can also be a helpful way to ensure that they have understood the directions properly.

Explanation:

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