8. A home inspection performed by a licensed inspector is
o a. a limited visual survey and basic performance evaluation of systems house.
o b. a Qull visual survey to ensure the house meets building code standards.
oc. a comprehensive investigation of the house using specialized equipment.
o d. an exploratory probe to determine the cause or effect of deficiencies noted.

Answers

Answer 1

Answer:

a. a limited visual survey and basic performance evaluation of systems in house.

Explanation:

A home inspection must be carried out by a certified and licensed inspector, but it is not a comprehensive investigation nor an exploratory probe of the house. It is basically a limited visual inspection carried out to determine if the house's systems (air conditioner, plumbing, and electrical) work properly, as well as to determine the condition of the walls, roof, windows, and other components of the house. A home inspection is generally requested when a house i being sold.


Related Questions

Social media allow marketers to build or tap into online communities, inviting participation from consumers and creating a long-term marketing asset in the process. Tru eor False

Answers

Answer:

True.

Explanation:

Digital marketing is growing substantially worldwide, as the internet has revolutionized the way people communicate and shop.

Social networks are social interaction platforms where there are several possibilities for business exploration for marketers. Through social networks it is possible to capture new customers, collect important market data and information, build relationships with consumers and build online communities where it is possible to create long-term marketing assets that will generate positive returns for a company.

There are several paths in digital marketing, it is necessary for marketers to choose those most aligned with the company's business and thus outline essential marketing strategies for attracting and retaining customers who interact on social networks and from there develop a marketing asset for generating revenue and profits.

An investor purchases a long call at a price of $2.60. The strike price at expiration is $37. If the current stock price is $37.10, what is the break-even point for the investor?

Answers

Answer: $39.60

Explanation:

A long call makes a profit when the price of the underlying stock is higher than the strike price and the cost of acquiring the call.

The Break-even point for the investor will be at the point where the underlying stock price will be the same as the strike price plus the cost paid to purchase the call.

Break-even point = Strike price + Price of call

= 37 + 2.60

= $39.60

Jacob is self-employed and reports all of his income and expenses in his personal income tax return. ______________

Answers

Answer:

Sole proprietorship

Explanation:

The sole proprietorship is the business organization in which there is only one owner who controls its day to day operations. In this, the owner has  unlimited liability as he does whatever he wants without any restrictions

Also, in this the person should  file his return on the personal income tax return where he disclosed all his incomes and expenses during the year

So this is an example of Sole proprietorship

Jasper makes a $25,000, 90-day, 7% cash loan to Clayborn Co. Jasper's entry to record the transaction should be

Answers

Answer:

Date     Journal Entry                    Debit          Credit

              Cash                              $25,437.50

                     Interest Revenue                         $437.50

                     Note Receivable                          $25,000

Workings

Interest = $25,000 * 7% * 90/360 = $437.50

​​​​​​​Cash received = $25437.50

If your 60-year-old customer purchases a nonqualified variable annuity and withdraws some of her funds before the contract is annuitized, what are the consequences of this action?

Answers

Answer: Ordinary income tax on earnings exceeding basis.

Explanation:

From the question, we are informed that a 60-year-old customer purchases a nonqualified variable annuity and withdraws some of her funds before the contract is annuitized.

The consequences of this action is that Ordinary income tax on earnings exceeding basis. It should be note that the distributions from a nonqualified plan had to do with return on original investment and income from the investment. Since there's defer of the income, it'll be taxable as an ordinary income.

Camel Company sells a segment of its operations at a loss. Camel has not previously experienced such an event and does not expect to again. The loss from the disposal of the segment should be reported in the income statement as:

Answers

Answer: a separate amount in a discontinued operations section

Explanation:

From the question, we are informed that Camel Company sells a segment of its operations at a loss and that Camel has not previously experienced such an event and does not expect to again.

The loss from the disposal of the segment should be reported in the income statement as a separate amount in a discontinued operations section. This is because Camel is not interested in experiencing such event anymore as it's going to b discontinued.

Holding all else constant, which of the following demand schedules is most likely to represent New York Mets T-shirts if they win the World Series?
A.
Quantity
Price Demanded
$8.00 200
$10.00 175
$12.00 150
$14.00 100
$16.00 50
B.
Price Demanded
$8.00 250
$10.00 200
$12.00 175
$14.00 150
$16.00 100
C.
Price Demanded
$8.00 175
$10.00 150
$12.00 125
$14.00 75
$16.00 25
D.
Price Demanded
$8.00 250
$10.00 125
$12.00 100
$14.00 100
$16.00 100
E.
Price Demanded
$8.00 50
$10.00 100
$12.00 150
$14.00 175
$16.00 200
A. A.
B. B.
C. C.
D. D.
E. E.

Answers

Answer: Option B

Explanation:

If the New York Mets win the World Series, their shirts will be more sought after as more fans will want to identify with them. This will reflect on the demand for their shirts by quantity demanded increasing at every price.

In Option B that is the case. At a price of $8, the quantity demanded has increased to 250 from 200, for $10 it has increased from 175 to 200 and so on thus reflecting that at every price, demand has gone up.

The constraint at Johngrass Corporation is time on a particular machine. The company makes three products that use this machine. Data concerning those products appear below: VT UV LQ Selling price per unit $335.09 $228.37 $199.12 Variable cost per unit $259.44 $173.26 $159.79 Minutes on the constraint 6.60 3.40 4.60 Assume that sufficient time is available on the constrained machine to satisfy demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of the constrained resource

Answers

Answer:

$8.55 per minute

Explanation:

The computation of willing to pay to acquire more of the constrained resource is shown below:-

= (Selling price - Variable cost) ÷ Minutes on the constraint

= ($199.12 - $159.79) ÷ 4.60

= $39.33 ÷ 4.60

= $8.55 per minute

Therefore for computing the willingness to pay to acquire more of the constrained resource we simply applied the above formula.

Honeycutt Co. is comparing two different capital structures. Plan I would result in 12,700 shares of stock and $109,250 in debt. Plan II would result in 9,800 shares of stock and $247,000 in debt. The interest rate on the debt is 10 percent. The all-equity plan would result in 15,000 shares of stock outstanding. Ignore taxes for this problem. a. What is the price per share of equity under Plan I

Answers

Answer: $47.50

Explanation:

The price pr share given debt and the number of shares if the company had both an all equity structure and a mixed structure can be expressed as;

Price per Share = Debt Value / (Number of Shares under All-equity plan - Number of shares under mixed plan)

Price per share = 109,250 / (15,000 - 12,700)

= 109,250 / 2,300

= $47.50

Provide two examples of goods/services that are classified as private goods/services even though they are provided by a federal government.

Answers

Answer: Post office; toll roads

Explanation:

Private goods are goods that have two main features which are rivalry and excludability. Private goods have to be bought before they can be used.

The goods/services that are classified as private goods/services even though they are provided by a federal government are post offices and toll roads.

Even though they're both provided by the government, individuals have to pay to use toll roads and also had to pay for stamps and other things before their delivery are made at the post office.

What would the year 3 stock price need to be to meet your required rate of return of 13%?

Answers

Answer: $105.49

Explanation:

The Value of the stock today is given by;

[tex]P = \frac{D1}{1 + r} + \frac{D2}{(1+r)^2} + \frac{D3}{(1+r)^3} + \frac{P3}{(1+r)^3}[/tex]

[tex]80 = \frac{2}{1 + 0.13} + \frac{3}{(1+0.13)^2} + \frac{4}{(1+0.13)^3} + \frac{P3}{(1+0.13)^3}[/tex]

[tex]P3 = (80 * {1.13^3) - (\frac{2}{1.13} + \frac{3}{1.13^2} + \frac{4}{1.13^3})[/tex]

P3 = $105.49

Copa Corporation is considering the purchase of a new machine costing $150,000. The machine would generate net cash inflows of $43,690 per year for 5 years. At the end of 5 years, the machine would have no salvage value. Copa’s cost of capital is 12 percent. Copa uses straight-line depreciation. The present value factors of annuity of $1.00 for different rates of return are as follows:
Period 12% 14% 16% 18%
4 3.0373 2.91371 2.79818 2.69006
5 3.60478 3.43308 3.27429 3.12717
6 4.1141 3.88867 3.68474 3.49760
The proposal's internal rate of return (rounded to the nearest percent) is:__________
A. 14 percent.
B. 16 percent.
C. 18 percent.
D. 12 percent.

Answers

Answer:

A

Explanation:

Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested

IRR can be calculated with a financial calculator  

Cash flow in year 0 = $-150,000

Cash flow each year from year 1 to 5 = $43,690

IRR = 14%

To find the IRR 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 IRR button and then press the compute button.  

Find the duration of a bond with settlement date June 11, 2018, and maturity date December 15, 2027. The coupon rate of the bond is 4%, and the bond pays coupons semiannually. The bond is selling at a yield to maturity of 5%.

Answers

Answer:

The duration of a bond is 7 years and 7 months.

Explanation:

The settlement date is the date that the bond transaction is concluded, the date that the buyer must pay for the bond and the seller must deliver the asset.

The maturity date is the date where the seller will receive an amount equal to the principle or nominal amount of the bond.

Thus, the duration of the bond is the period between the settlement date (June 11, 2018) and the maturity date (December 15, 2027).

The period is 7 years and 7 months

_____________, is the measure of how popular a product is. a) Marketability b) Profitability c) Popularity d) Consumability

Answers

Popularity, pretty straight forward

Popularity is the measure of how popular a product is.

Product popularity is defined as the extent to which a product is purchased by the general public. The popularity appeal helps to persuade targeted customers with an advertisement. Product reviews are one of the most efficient ways of branding and marketing your online store. A good review can always increase the popularity and reliability of a product.

Popularity is the measure of how popular a product is.

For more information:

https://brainly.com/question/24023662?referrer=searchResults

You own a portfolio equally invested in a risk-free asset and two stocks. One of the stocks has a beta of 1.31 and the total portfolio is equally as risky as the market. What must the beta be for the other stock in your portfolio?

Answers

Answer:

the beta of stock₂ = 1.69

Explanation:

the weight of each security is ¹/₃ of the portfolio:

the risk free asset has a beta of 0stock₁ has a beta of 1.31stock₂ has a beta of ?

the portfolio's beta is 1

1 = (¹/₃ x 0) + (¹/₃ x 1.31) + (¹/₃ x ?)

1 = 0.437 + (¹/₃ x ?)

1 - 0.437 = (¹/₃ x ?)

0.563 = (¹/₃ x ?)

? = 0.563 / ¹/₃ = 1.689 = 1.69

the beta of stock₂ = 1.69

(a) Complete the following cost and revenue schedules for a perfectly competitive firm:
Quantity Price ( $Total Revenue ($) Total Cost ($) Profit ($) Marginal Cost ($)
0 60 50 ---
1 60 60
2 60 90
3 60 140
4 60 200
5 60 280
(b) Graph MC and price.
(c) What rate of output maximizes profit?
(d) What is MC at that rate of output?

Answers

Answer:

(a) See the attached excel file

(b) See the attached photo

(c) Quantity 4

(d) MC = $60

Explanation:

Note: The data in the question are merged but they are first sorted appropriately before answering the question in the attached excel file.

(a) Complete the following cost and revenue schedules for a perfectly competitive firm

Note: See the attached excel file for the schedule

The following formula are used in the table:

Total revenue = Quantity * Price

Profit = Total revenue - Total cost

Marginal cost = New unit total cost - Previous unit total cost

(b) Graph MC and price.

Note: See the attached photo for the graph

(c) What rate of output maximizes profit?

The rate of output that maximizes profit occurs where MC = Price. This occurs at quantity 4 on the attached excel file and point A in the attached graph where MC = Price = $60

(d) What is MC at that rate of output?

From part (c), MC at that rate of output is $60.

Distinguish between serial activities and concurrent activities why do we seek to use concurrent activities as a way to shorten the project length

Answers

Answer and Explanation:

Serial activities are activities that are performed one after the other. In serial activities, one step in a job is finished before the other step starts. In other words more time may be spent as against concurrent activities whereby the two steps in a job can be performed at the same time such that the second step can start while the first step of the job is in progress. Managers prefer concurrent activities because it saves time as jobs are completed faster when steps can be performed "concurrently"

The following information is taken from the financial statements of Burton Industries:________.
Total Assets $360,000
Total Liabilities 162,000
Total Stockholders' Equity 198,000
Net Income 126,000
Income Tax Expense 37,800
Interest Expense 9,000
a. 18.2
b. 15.0
c. 4.7
d. 19.2.

Answers

Answer:

d. 19.2

Explanation:

The missing question is "The company's times interest earned ratio is?"

Solution

Interest Earned Ratio = Income before Interest and taxes or EBIT / Interest Expenses

Net Income                       $126,000

Add: Income taxes            $37,800

Add: Interest Expenses    $9,000

EBIT                                   $172,800

Hence, Interest Earned Ratio = EBIT / Interest Expenses

Interest Earned Ratio = $172,800 / $9,000

Interest Earned Ratio = 19.2

Dorothea orginally sold her home for $92,000. At that time, her adjusted basis in the home was $95,000. Five years later, she repossessed the home when the balance of the note was $87,000. She resold it within one year for $100,000. Original sale expenses were $1,150 and reslae expenses were $1,350. Repossession costs were $2,900. She incurred $1,100 for improvements prior to the resale. What is Dorothea's recomputed gain?

Answers

Answer:

$3,500

Explanation:

The computation of Dorothea's recomputed gain is shown below:-

Particulars                                                Amount

Initial Sale price                                        $92,000

Less: Adjusted Cost of Home                ($95,000)

Less: Original Sale Expenses                  ($1,150)

Loss from 1st-time sale                             $4,150

Resold sale price                                     $100,000

Less: Repossessed Cost                          ($87,000)

Less: Improvements Costs prior to

Resale                                                       ($1,100)

Less: Repossession Costs                     ($2,900)

Less: Resale Expenses                           ($1,350)

Gain from Resale of Home                      $7,650

Less: Loss from 1st-time sale                  ($4,150)

Gain from Resale of Home                      $3,500

Plattsburgh Tech’s annual demand is 3,000 units which costs $30 per unit. You are in charge of inventory management of Plattsburgh Tech. You know that the annual holding cost is 20% of the unit price and ordering cost is $102.40 per order. Plattsburgh Tech. operates 300 days a year.

Required:
a. Compute EOQ
b. Compute the total inventory cost for EOQ
c. Compute the length of an order cycle
d. Compute ROP assuming that the delivery load time is three days

Answers

Answer:

a. 320 units

b. $1,920

Explanation:

EOQ = √ 2 × Annual Demand × Ordering Cost per Order / Holding Cost per unit

        = √ (2 × 3,000 units × $102.40 / ($30 × 20%))

        = 320 units

total inventory cost = ordering cost + holding cost

                                = 3,000 units/ 320 units  × $102.40 + 320 units/ 2 × ($30 × 20%

                                = $960 + $960

                                = $1,920

Nori files a suit against Mica to enforce an oral contract that would otherwise be unenforceable under the Statute of Frauds.The court could enforce such a contract if:________
A) Nori foreseeably and justifiably relied on Mica's promise to her detriment.
B) Mica denies the existence of any contract.
C) neither party has begun to perform.
D) the deal does not involve customized goods.

Answers

Answer: A. Nori foreseeably and justifiably relied on Mica's promise to her detriment.

Explanation:

From the question, we are informed that Nori files a suit against Mica to enforce an oral contract that would otherwise be unenforceable under the Statute of Frauds.

The court could enforce such a contract if Nori foreseeably and justifiably relied on Mica's promise to her detriment.

Coronado Industries purchased land as a factory site for $1350000. Coronado paid $116000 to tear down two buildings on the land. Salvage was sold for $8300. Legal fees of $5160 were paid for title investigation and making the purchase. Architect's fees were $46600. Title insurance cost $3500, and liability insurance during construction cost $3800. Excavation cost $15500. The contractor was paid $4400000. An assessment made by the city for pavement was $9900. Interest costs during construction were $260000. The cost of the land that should be recorded by Coronado Industries is

Answers

Answer:

The cost of the land that should be recorded by Coronado Industries is $1,492,860.

Explanation:

Cost of Land = Purchase Value + Cost Incurred to Tear Down 2 Buildings - Salvage + Legal Fees + Title Insurance Cost + Assessment Cost

Cost of Land = $1,350,000 + $116,000 + $8,300 + $5,160 + $3,500 + $9,1900

Cost of Land = $1,492,860

Thus, the cost of the land that should be recorded by Coronado Industries is $1,492,860

alley Spa purchased $10,800 in plumbing components from Tubman Co. Valley Spa signed a 60-day, 10% promissory note for $10,800. If the note is dishonored, but Tubman intends to continue collection efforts, what is the journal entry to record the dishonored note

Answers

Answer: PLease find the answer below

Explanation:

journal entry to record the dishonored note

Account title                                       Debit                     Credit

Accounts Receivable—Valley Spa $10,980

Interest Revenue                                                             $180

Notes Receivable                                                             $10,800.

Interest Revenue = Principal x rate x period

= 10,800 x 10% x 60/360( using 360 days =1 year)

=$180

The following data have been extracted from the financial statements of Prentiss, Inc., a calendar-year merchandising corporation:
December 31,
Balance Sheet Data 2017 2018
Trade accounts receivable-net 84,000 78,000
Inventory 150,000 140,000
Accounts payable-merchandise (credit) (95,000) (98,000)
Total sales for 2018 were $1,200,000 and for 2017 were $1,100,000.
Cash sales were 20 % of total sales each year
Cost of goods sold was $840,000 for 2018.
Variable general and administrative (G&A) expenses for 2018 were $120,000.
These expenses are the same proportion of sales every year and have been paid at the rate of 50% in the year incurred and 50% the following year. Unpaid G&A expenses are not included in accounts payable. Fixed G&A expenses, including $35,000 depreciation and $5,000 bad debt expense, totaled $100,000 each year. The amount of such expenses involving cash payments was paid at the rate of 80% in the year incurred and 20% the following year. In each year, there was a $5,000 bad debt estimate and a $5,000 write-off. Unpaid G&A expenses are not included in accounts payable.
Required: Compute the following:
1. The amount of cash collected during 2018 that resulted from total sales 2017 and 2018.
2. The amount of cash disbursed during 2018 for purchases of merchandise.
3. The amount of cash disbursed during 2018 for variable and fixed G&A expenses

Answers

Answer:

Prentiss, Inc.

Computation of:

1. The amount of cash collected during 2018 that resulted from total sales 2017 and 2018:

                                                                       2018

Beginning Trade accounts receivable       84,000

Credit Sales                                              960,000

Ending Trade accounts receivable-net    (78,000)

Cash received from customers              966,000

Cash sales (20% of Sales)                       240,000

Total cash collected                            $1,206,000

2. The amount of cash disbursed during 2018 for purchases of merchandise:

                                                                                    2018

Beginning Accounts payable-merchandise             95,000

add Purchases (Cost of goods sold)                       840,000

less Ending Accounts payable-merchandise           98,000

Cash disbursed for purchases of merchandise  $837,000

3. The amount of cash disbursed during 2018 for variable and fixed G&A expenses:

Fixed:

80% of $60,000 paid in the year = $48,000

20% of $60,000 for last year's =       12,000

Cash disbursed for Fixed G&A =                      $60,000

Variable:

80% of $120,000 paid in the year = $96,000

20% of $110,000 for last year's =      22,000  $118,000

Total G&A paid during 2018 =                         $178,000

Explanation:

a) Data and Calculations:

1. December 31,

Balance Sheet Data                                        2017              2018

Trade accounts receivable-net                    84,000           78,000

Inventory 150,000 140,000

Accounts payable-merchandise (credit)    (95,000)        (98,000)

Total sales                                              $1,100,000   $1,200,000

Cash sales were 20 % of total sales each year

Cost of goods sold was $840,000 for 2018

Cost of goods sold for 2017 = $770,000 ($840,000/1,200,000 x $1,1,00,000)

Variable general and administrative (G&A) expenses for 2018 were $120,000

Variable general and administrative (G&A) expenses for 2017 $110,000 ($120,000/$1,200,000 x $1,100,000)

Fixed general and administration (G&A) expenses for each year = $100,000

Cash paid for Fixed general and administration:

Total amount =       $100,000

less depreciation       35,000

less bad debts             5,000

Cash paid for fixed $60,000

Jenna decides to purchase a U.S. Treasury Bill for 95,000. The Treasury Bill matures in 180 days for 100,000. Let QR be the quoted rate on this U.S. Treasury Bill. Let j be the annual effective yield on this U.S. Treasury Bill assuming a 365 day year. Calculate j−QR.

Answers

Answer:

J-QR =0.96

Explanation:

Quoted interest rate(QR) is nominal interest rate that does not take compounding into consideration

Effective interest rate(J) is real interest rate that accounts for compounding

face value of tbill = 100,000

price = 95,000

time remaining for maturity, n = 180

QR T-Bill = [(Face Value - Price)/(Face Value)] *(360/n) = [(100,000-95,000)/100,000]*(360/180) = (5000/100,000)*2 = 0.10 or 10%

j = (1+ ((Face Value - Price)/price))(365/n) -1 = (1+((100,000-95,000)/95,000))(365/180) -1 = (1+(5000/95000))2.027778 -1 = 0.1096131

j = 0.1096131 or 10.96131% or 10.96%

Therefore j-QR = 10.96-10 = 0.96%

Mannix Corporation stock currently sells for $57 per share. The market requires a return of 11 percent on the firm’s stock. If the company maintains a constant 3.75 percent growth rate in dividends, what was the most recent dividend per share paid on the stock?

Answers

Answer:

$3.98 per share

Explanation:

Calculation for what was the most recent dividend per share paid on the stock

First step is to find the price of stock

Using this formula

Price of stock = Next Expected Dividend/(Required Return - Growth Rate)

Let plug in the formula

$57 = D1/(11%-3.75%)

D1=$57×0.0725

D1 = 4.1325

Second step is to find the most recent dividend per share paid on the stock

Using this formula

Most recent dividend = Next Expected Dividend/(1+growth Rate)

Let plug in the formula

Most recent dividend= 4.1325/(1.0375)

Most recent dividend=$3.98 per share

Therefore the most recent dividend per share paid on the stock will be $3.98 per share

Crane Company has two divisions—Standard and Premium. Each division has hundreds of different types of tennis racquets and tennis products. The following information is available: (Round answer to 0 decimal places, e.g. 5,275.) Standard Division Premium Division Total Sales $300000 $700000 $1000000 Variable costs $180000 280000 Contribution margin $120000 $420000 Total fixed costs $300000 What is the break-even point in dollars?

Answers

Answer:

The break-even point sales in dollars are $555,555.60

Explanation:

Contribution margin ratio= (Total contribution margin  /  Total sales  ) ×100

Contribution margin ratio= (S′ s contribution margin + P's contribution margin)  / Total sales * 100

Contribution margin ratio = $120000 + $420000) / $1000000 * 100

Contribution margin ratio = 54%

Therefore, the contribution margin ratio of sales mix is 54%.

Break Even Point sales = Fixed cost / Contribution margin ratio

=$300,000 / 54%

=$555,555.60

Therefore, the break-even point sales in dollars are $555,555.60

Assume that during the past year the consumer price index increased by 1.5 percent and the securities listed below returned the following nominal rates of return.
U.S Government T-bills 5.50%
U.S Government Long-term bonds 6.25
A. What are the nominal rates of return for each of these securities?
B. If next year the nominal rates all rise by 10 percent (i.e. multiply by 1.1, do NOT add 0.10) while inflation climbs from 4 percent to 5 percent, what will be the real rate of return on each security?

Answers

Answer:

A)

U.S Government T-bills 5.50%

U.S Government Long-term bonds 6.25%

B)

real rate of return = [(1 + nominal rate) / (1 + inflation rate)] - 1

U.S Government T-bills 5.50%

nominal rate = 5.5% x 1.1= 6.05%

inflation rate = 5%

real rate of return = [(1 + 6.05%) / (1 + 5%)] - 1 = 1%

U.S Government Long-term bonds 6.25

nominal rate = 6.25% x 1.1= 6.875%

inflation rate = 5%

real rate of return = [(1 + 6.875%) / (1 + 5%)] - 1 = 1.79%

Josh was a mechanic. One day when he attempted to weld a car's gasoline tank, it exploded and he was hurt. He filed to collect workers' compensation. His employer resisted on grounds that Josh had been negligent and had also violated the express regulations of the company when he attempted to weld a gasoline tank. Which statement is correct

Answers

Answer:

Josh can recover even if he was negligent and violated the employer's rules.

Explanation:

Worker's compensation is a type of insurance that covers wage and medical costs of an employee that was injured in the course of working for the employer.

Accidents can happen during the course of doing official duty, so worker's compensation provides a cover from financial burden when the employee becomes unproductive as a result of the accident.

Generally the issue of negligence on the part of the employee is not considered.

So Jos will be able to recover worker compensation when he was injured from the car gas tank explosion.

You buy a share of stock, write a one-year call option with X = $12, and buy a one-year put option with X = $12. Your net outlay to establish the entire portfolio is $11.50. What must be the risk-free interest rate? The stock pays no dividends.

Answers

Answer:

4.35%

Explanation:

You buy a share of stock, write a one-year call option with X = $12, and buy a one-year put option with X = $12. Your net outlay to establish the entire portfolio is $11.50. What must be the risk-free interest rate? The stock pays no dividends.

Given the following :

1 - year call option with X = $12

1- year put option with X = $12

Net outlay to establish portfio = $11.50

No dividend

Risk-free interest rate :

(X / net outlay) - 1

(12 / 11.50) - 1

1.0434782 - 1

= 0.0434782

Expressing as a percentage :

0.0434782 * 100

= 4.347%

=4.35%

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