Supercircuits is a decentralized company and has a required opportunity cost of capital of 15%. The home computer division, whose current ROI IS 10%, is considering an investment which will earn 13% return. The gaming division, whose current ROI is 20%. Is considering an investment which will earn a 17% return. If the objective is to maximize residual income, each division will make the following choice:______. Computer Gaming A. Reject Accept B. Accept Reject C. Accept Accept D. Rejec Reject

Answers

Answer 1

Answer:

B. Accept Reject

Explanation:

As we can see that the home computer has the earning of 10% and its return on investment is increased to 13% so it is a better choice for division of home computer to accept the investment and the other division i.e. gaming division should reject the proposal as it is already earned the 20% and if it is accepted so it decreased the return on investment

Therefore the option B is correct


Related Questions

John's dairy makes and sells homemade ice cream. He uses a machine he bought 15 years ago for $1,500. The machine still works but is so old that nobody else would be willing to buy it, as they would prefer buying a new one that would last longer. John's opportunity cost of continuing to use this machine is

Answers

Answer: zero

Explanation:

Opportunity cost is simply defined as what an individual forgoes when he or she is confronted with choices to make and makes a particular economic decision.

In this scenario, since we are told that nobody else would be willing to buy the machine, as they would prefer buying a new one that would last longer. It implies that John's opportunity cost of continuing to use this machine is zero since he has nothing to lose.

Vilas Company is considering a capital investment of $190,000 in additional productive facilities. The new machinery is expected to have a useful life of 5 years with no salvage value. Depreciation is by the straight-line method. During the life of the investment, annual net income and net annual cash flows are expected to be $12,000 and $50,000, respectively. Vilas has a 12% cost of capital rate, which is the required rate of return on the investment.

Answers

Answer:

a. 3.8 years

b. 12.63%

c. -$‭9,761.19‬

Explanation:

a. Cash Payback period.

The amount of time it would take for cash inflows to offset the initial outflow (investment).

= Investment/ Annual inflow

= 190,000 / 50,000

= 3.8 years

b. Annual income / Average Assets

= 12,000 / ( (190,000 + 0) / 2)

= 12.63%

c. Annual inflow is $50,000 for 5 years. Net present value is the present value of inflows less investment

Present value of inflows = 50,000 * (1 - ( 1 + 12%)⁻⁵ / 12%)

= $180,238.81

Net Present Value = 180,238.81 - 190,000

= -$‭9,761.19‬

a. Calculating the Cash Payback period:

Cash Payback period refers to the amount of time it would take for cash inflows to offset the initial outflow

Cash Payback period = Investment/ Annual inflow

Cash Payback period = 190,000 / 50,000

Cash Payback period = 3.8 years

b. Calculating the annual rate of return on the proposed capital expenditure:

Annual rate of return = Annual income / Average Assets

Annual rate of return = $12,000 / (($190,000 + 0) / 2)

Annual rate of return = $12,000 / $95,000

Annual rate of return = 0.126315789

Annual rate of return = 12.63%

c. Annual inflow is $50,000 for 5 years.

Net present value is the present value of inflows less investment

Present value of inflows = Annual inflow * (1 - (1 + i)^-n / i)

Present value of inflows = $50,000 * (1 - (1 + 12%)^-5 / 12%)

Present value of inflows = $180,238.81

Net Present Value = Present value of inflows - initial outflow

Net Present Value = 180,238.81 - 190,000

Net Present Value = -$‭9,761.19‬

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On April 1st, Bob the Builder entered into a contract of one-month duration to build a barn for Nolan. Bob is guaranteed to receive a base fee of $4,500 for his services in addition to a bonus depending on when the project is completed. Nolan created incentives for Bob to finish the barn as soon as he can without jeopardizing the structural integrity of the barn. Nolan offered to pay an additional 30% of the base fee if the project finished 2 weeks early and 10% if the project finished a week early. The probability of finishing 2 weeks early is 30% and the probability of finishing a week early is 60%. What is the expected transaction price with variable consideration estimated as the expected value? Multiple Choice $5,175 $4,500 $6,175 $4,275

Answers

Answer:

a. $5,175

Explanation:

Expected transaction price with variable consideration estimated as the expected value = $4,500 + (30%*$4,500*30%) + (10%*$4,500*60%) + (0%*$4,500*10%)

= $4,500 + $405 + $270 + $0

= $5,175

So, the expected transaction price with variable consideration estimated as the expected value is $5,175

Boris, Inc. sells a single product for $900 per unit, including a 90-day warranty against defects. It is estimated that 3% of the units sold will prove defective and require an average repair cost of $70 per unit. During July, 800 units were sold. Five of them were reported defective and repaired in July. What amount should be added to the Estimated Liability for Product Warranties for July

Answers

Answer:

the  amount that added to estimated liability is $1,330

Explanation:

The computation of the amount that added to estimated liability is as follows

= 800 units sold × 3% defective - five defective units

= 24 units - 5 units

= 19 units

Now the amount that should be added is

= 19 units × $70 per unit

= $1,330

Hence, the  amount that added to estimated liability is $1,330

The same is to be considered

The total amount which is to be added to the total estimated repairs for Boris Inc. will be $1330. This amount is calculated as per the instructions given in the query.

Boris sold 800 units of a product so it did sales of $7,20,000 as the cost per unit was $900. It has also been provided that the total amount to be calculated will be 3% of the total sales for the month of July.

The calculation further becomes simpler as there would be 3% defective products out the 800 units sold. This can be illustrated as below

[tex]3=\frac{x}{800} * 100[/tex]

[tex]x=\frac{2400}{100}[/tex]

[tex]x=24[/tex]

Therefore we know that 24 units will turn out to be defective. So, the total expected liability also known as the contingent liability of Boris Inc. will be as under

[tex](24-5 )* 70= 1330[/tex]

Here we have deducted the cost of 5 units in the calculation as 5 units have already been detected as defective and their liability has occurred. So, only 19 units are multiplied by the cost of repair of such products.

Hence, Boris Inc. will have to ascertain that their estimated contingent liability is $1330 after multiplying the 3% of units sold with the cost of repair.

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Long-term corporate bond have had a historical average return of 6.4% and a standard deviation of 8.4% over this same time period. What is the range of returns that you would expect to experience 68% of the time for long-term corporate bonds?

Answers

Answer:

The range will be "-2.0% to 14.8%". A further explanation is given below.

Explanation:

According to the question,

For 68%, the range seems to be +/- 1 standard deviation of the mean. So that the upper as well as the lower range will be:

Upper range,

= [tex]6.4 - 8.4[/tex]

= [tex]-2.0[/tex] (%)

Lower range,

= [tex]6.4 + 8.4[/tex]

= [tex]14.8[/tex] (%)

So that the range would be between "-2.0% to 14.8%".

PLS HELP!!
Type the correct answer in the box. Spell all words correctly.
Which aspect should businesses consider when trying to sell a product?
Instead of a product's features, a business should try to sell through a product's
because they describe what customers
can gain from the product.

Answers

Answer:

Benefits

Explanation:

Both existing and potential customers attached the value of a product to its perceived benefits rather than its technical features.

When selling a product, businesses should focus more on communicating the benefits of a commodity than its features. Customers are more concerned with the advantages they stand to gain by consuming goods or services.

Focusing on benefits allows a business to set high prices and differentiate the product from its competitors. Communicating benefits creates a psychological conviction on customers, making them want to buy the product, thereby increasing sales.

Answer:

Features

Explanation:

Got it right plato

Keyser Materials has 8 percent coupon bonds on the market with 19 years to maturity. The bonds make semiannual payments and currently sell for 102 percent of par. What is the current yield

Answers

Answer: 1020

Explanation:

The following information can be gotten from the question:

Face value of bond = 1000

Coupon = 8%

Therefore, PMT = 8% × 1000/2 = 40

Years to maturity = 19

Since semiannual payments are made,

Nper = 19 × 2 = 38

Current price = PV

= 102% × 1000

= 1.02 × 1000

= 1020

1. Current Yield = Coupon/Current prce

= (2*40)/1020 = 7.84%

what are the two ways to organize lists of sources

Answers

organize information alphabetically

Answer:

B. Numerically by when each source is mentioned in the paper or alphabetically by the Author's last name

Explanation:

Just answered it on Ed:)

4. JEF Inc. just paid a $1.30 dividend, and it is expected to grow at 40% for the next 3 years. After 3 years the dividend is expected to grow at the rate of 7% indefinitely. If the required return is 12.7%, what is the stock's value today

Answers

Answer:

The stock's value today is $53.33

Explanation:

The value of a stock can be calculated by determining the present value of associated cash flows

First, we need to calculate the expected dividend each year

Year ______ Dividend

1__________$1.30 x ( 1 + 40% ) = $1.8200

2__________$1.82 x ( 1 + 40% ) = $2.5480

3__________$2.548 x ( 1 + 40% ) = $3.5672

4__________$3.5672 x ( 1 + 7% ) = $3.8169

Now calculate the present value of the dividends

Year ______ Present value

1__________$1.8200 x ( 1 + 12.7% )^-1 = $2.0511

2__________$2.5480 x ( 1 + 12.7% )^-2 = $2.0061

3__________$3.5672 x ( 1 + 12.7% )^-3 = $2.4920

4__________[ $3.8169 / ( 12.7% - 7% ) ] x ( 1 + 12.7% )^-3 = $46.7804

Hence,

Value of Stock = $2.0511 + $2.0061 + $2.4920 + $46.7804 = $53.3296 = $53.33

**ECONOMICS** A high level of education is most likely to lead to:

A. a lower overall income.

B. higher medical costs.

C. a higher unemployment rate.

D. a lower unemployment rate.

Answers

Answer:

D. a lower unemployment rate.

Explanation:

income-generating activity. It can be either full-time or part-time.  One can be employed by a private firm, the government, or be self-employed.

A higher level of education equips an individual with the skills needed to get employed. Employers demand a certain level of education to hire workers. The skills to go into self-employment can be acquired through education. Therefore, the more people are educated, the higher the chances of being employed, which translates to a low unemployment rate.

Answer:

d

Explanation:

Which of these answers the following two questions: 1) how will the firm make money on the product and/or services offered, and 2) how will the firm be positioned in the marketplace

Answers

Answer:

1) use Information Technology and Information Systems.

online collaboration. virtual meetings.Big data, cloud computing, internet of things and mobile digital platforms.

According to the question, the Value proposition is the answer.

What is Value Preposition?

A value proposition is a succinct sentence that explains why customers should select your goods or services. It's more than simply a description of your company's goods or services; it's also the unique solution you offer and the assurance of value you make to clients.

One of the most crucial conversion criteria is the value proposition. A strong value offer may mean the difference between losing and winning a sale. Because of this, it's critical to develop one that truly depicts your goods and services and explains why you're the best option.

Your company's distinctive identification is your value proposition. Without it, customers won't be motivated to buy your products. They might even decide to go with a rival merely because of how well that company's marketing and sales efforts convey its value offer.

To know more about the Value proposition follow the link.

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Vaughn Manufacturing incurred the following costs for 72000 units: Variable costs $432000 Fixed costs 392000 Vaughn has received a special order from a foreign company for 4000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $5600 for shipping. If Vaughn wants to earn $8000 on the order, what should the unit price be

Answers

$7.8
Explanation:
Variable costs = $504,000
Fixed costs = $392,000
Number of units produced = 84,000
Shipping charges = $4,500
Therefore, the variable cost per unit is calculated as follows:
= Variable costs ÷ Number of units produced
= $504,000 ÷ 84,000
= $6 per unit
Incremental fixed cost per unit (For 2,500):
= Shipping cost ÷ 2,500
= $4,500 ÷ 2,500
= $1.8 per unit
Therefore, the unit sales price will be the sum total of variable cost per unit and incremental fixed cost per unit for the shipping charges.
BEP (in sales price per unit):
= Variable cost per unit + incremental fixed cost per unit
= $6 + $1.8
= $7.8

Two company divisions produce completely different products but must seek funding from head office for capital expansion. The relationship between these two divisions would be best described as

Answers

Answer:

Pooled interdependence

Explanation:

Pooled interdependence is defined as a situation where tasks are split between different units that do not have contact with each other. There is no workflow between the units.

That is they operate independently.

The organisation achieves its set goals through independent efforts of its departments.

In the given scenario the divisions produce completely different products but must seek funding from head office for capital expansion.

This is a form of pooled interdependence

Jackson's Home Cookin just paid its annual dividend of $0.65 a share. The stock has a market price of $13.00 and a beta of 1.12. The return on US Treasury bills is 2.5% and the market risk premium is 6.8%. What is the firm's cost of equity

Answers

Answer:

10%

Explanation:

The firm cost of equity is the return that is required by providers of Common Stock. This can be calculated in two ways. The first option is to use the Dividend Growth Model and the other option is to use the Capital Asset Pricing Model (CAPM).

The information given in the question is not sufficient to use the Dividend Growth Model since we have not been told the growth percentage in dividends.

We will thus use the Capital Asset Pricing Model (CAPM) as follows :

Cost of Equity = Return of Risk free Securities + Beta × Market Risk Premium

Therefore,

Cost of Equity = 2.5% + 1.12 × 6.8%

                        = 10%

On January 12, 2021, Jefferson Corporation purchased bonds of Rose Corporation for $75 million at par and classified the securities as available-for-sale. On December 31, 2021, these bonds were valued at $68 million. Nine months later, on October 3, 2022, Jefferson Corporation sold these bonds for $86 million. As part of the multistep approach to record the 2022 transaction, Jefferson Corporation should next take the second step of:

Answers

Answer:

$11 million gain

Explanation:

As part of the multi step approach to record the 2022 transaction, Jefferson Corporation should next take the second step of: Recording a sales transaction with a gain of the amount of $11 million which is Calculated as:

Gain= Bonds purchased $75 million at par - Bonds sold $86 million

Gain=$11 million

When an organization defines itself and its niche in an environment by the choice of what sector or field of the environment it will use its technology, products, and services to compete in and serve, it is describing its ______.

Answers

Answer:

Domain

Explanation:

It should be noted that When an organization defines itself and its niche in an environment by the choice of what sector or field of the environment it will use its technology, products, and services to compete in and serve, it is describing its Domain. Domain can be regarded as the chosen field of action for an organization/company, it encompass the part of the environment chosen by the organization which is vital to the organization, it involves the chosen niche of the organization in the environment.

When Larinda returned from training, her manager did ask how her training went but gave her a very heavy workload. We can argue that Larinda's job has a _____ climate.

Answers

Answer:

Poor transfer climate.

Explanation:

The transfer climate can be defined as a trait in working environment which may either advance or impede the application of the trained skills. It is a corporative culture that aids empolyees to transfer their the skills and knowledge they have acquired from the training and incorporate it into their work place.

In the given case, one can argue that Larinda's working place has a poor transfer climate because her manager gave her a very heavy workload to do. Larinda has just returned from training and for getting good performance out of Larinda's trained skills,  her manager need to slowly incorporate her skills in job setting.

Therefore, poor transfer climate is the correct answer.

The information technology department is frustrated because they are constantly training one group on the same issue. The department manager reports it is the ________ to learn the system and not expect repetitive training. Group of answer choices

Answers

Answer:

users' responsibility.

Explanation:

Training is the process in which employers provides employees with specific, identifiable knowledge and skills for use in their present jobs.

Generally, organizations should ensure they continually train their employees in different areas (skills) so they don't lag behind and to close the gap between rapid technological innovation.

Also, an instructional design process can be defined as a strategic model which typically involves determining the needs of the employees (learners or trainees) for the development of learning goals, objectives, experiences and the design and organization of assessments in order to enhance the quality of information and instructions.

In this scenario, the information technology department is frustrated because they are constantly training one group on the same issue. The department manager reports it is the users' responsibility to learn the system and not expect repetitive training.

This ultimately implies that, once an employee has undergone a training sponsored by his or her employer, it is very important that he or she devotes more time to learning to perfection rather than being trained on the same skill over and over again.

Lucy's Music Emporium opened its doors on January 1, 2015, and it was granted permission to use the same depreciation calculations for shareholder reporting and income tax purposes. The company planned to depreciate its fixed assets over 20 years, but in December 2015 management realized that the assets would last for only 15 years. The firm's accountants plan to report the 2015 financial statements based on this new information. How would the new depreciation assumption affect the company's financial statements? a. The firm's reported 2015 earnings per share would increase. b. The firm's EBIT would increase. c. The firm's net liabilities would increase. d. The firm's reported net fixed assets would increase.

Answers

Answer:

The firm's cash position in 2015 and 2016 would increase.

Explanation:

In the case when the life of an asset would decrease that represents the depreciation would rise and if the depreciation rise so the EBIT and EPS would reduced and in the case when the EBIT reduced, so automatically the tax expense is also reduce

So, the cash position of the firm woud increase

Hence, the above represents the answer

Pedro borrowed $250,000 to purchase a machine costing $300,000. He later borrowed an additional $25,000 using the machine as collateral. Both notes are nonrecourse. Eight years later, the machine has an adjusted basis of zero and two outstanding note balances of $140,000 and $15,000. Pedro sells the machine subject to the two liabilities for $45,000. What is his realized gain or loss

Answers

Answer:

Pedro

Pedro's realized gain is $45,000.

Explanation:

a) Data and Calculations:

Cost of equipment = $250,000

Adjusted basis of equipment after eight years = $0

Proceeds from sale of equipment = $45,000

Realized gain = Sales proceeds minus adjusted basis

= $45,000 - $0

= $45,000

b) Pedro's realized gain is the gain he earned by selling the equipment at a price higher than the original purchase price's adjusted basis.  Since the equipment is sold at a higher than its adjusted basis, Pedro has achieved a realized gain of $45,000, which increases his current assets.  The outstanding note balances of $140,000 and $15,000 remain liabilities to be settled in the future.  They do not form part of the basis for calculating the realized gain or loss.

Hull Company reported the following income statement information for the current year: Sales $ 413,000 Cost of goods sold: Beginning inventory $ 136,500 Cost of goods purchased 276,000 Cost of goods available for sale 412,500 Ending inventory 147,000 Cost of goods sold 265,500 Gross profit $ 147,500 The beginning inventory balance is correct. However, the ending inventory figure was overstated by $23,000. Given this information, the correct gross profit would be:

Answers

Answer: $124,500

Explanation:

If Ending Inventory was overstated by $23,000, this means that Cost of Goods was understated by $23,000.

Actual Cost of Goods sold = 265,500 + 23,000

= $288,500

Gross profit = Sales - Cost of goods

= 413,000 - 288,000

= $124,500

Roccos Incorporated reports the following amounts at the end of the year. Cash$6,200Service revenue$72,200 Equipment 19,500 Cost of goods sold (food expense) 54,300 Accounts payable2,500Buildings29,000 Delivery expense 3,500 Supplies 1,500 Salaries expense6,400Salaries payable800 Deferred Revenue5,000Accumulated Depreciation8000 In addition, the company had common stock of $21,000 at the beginning of the year and issued an additional $2,100 during the year. The company also had retained earnings of $12,600 at the beginning of the year and paid dividends of $3,800 during the year. Prepare the income statement, statement of stockholders' equity, and balance sheet.

Answers

Answer:

Roccos Incorporated

a) Roccos Incorporated Income Statement for the year ended Dec. 31:

Service revenue                                            $72,200

Cost of goods sold (food expense) 54,300

Delivery expense                               3,500

Salaries expense                               6,400  64,200

Net income                                                    $8,000

b) Roccos Incorporated Statement of Stockholders' Equity for the year ended December 31:

Common stock    $23,100

Retained earnings 16,800

Equity balance   $39,900

c) Roccos Incorporated Balance Sheet as of December 31:

Assets:

Cash                                   $6,200

Supplies                                1,500       $7,700

Equipment           19,500

Acc. Depreciation 8,000    11,500

Building                             29,000      40,500

Total assets                                       $48,200

Accounts payable            $2,500

Salaries payable                    800

Deferred revenue              5,000     $8,300

Common stock             $23,100

Retained earnings          16,800      39,900

Total liabilities + equity                  $48,200

Explanation:

a) Data and Calculations:

Cash                                                  $6,200

Service revenue                                            $72,200

Equipment                                          19,500

Cost of goods sold (food expense) 54,300

Accounts payable                                            2,500

Buildings                                          29,000

Delivery expense                              3,500

Supplies                                             1,500

Salaries expense                              6,400

Salaries payable                                                800

Deferred Revenue                                         5,000

Accumulated Depreciation                            8,000

Common Stock                                             23,100

Retained Earnings                                         12,600

Common stock of      $21,000

Additional issue             2,100

Total common stock $23,100

Retained earnings  $12,600

Net income                 8,000

Dividends paid          (3,800)

Retained earnings $16,800

The Draper Corporation is considering dropping its Doombug toy due to continuing losses. Data on the toy for the past year follow: Question 34 - Final If the toy were discontinued, Draper could avoid $8,000 per year in fixed costs. The remainder of the fixed costs are not avoidable. Suppose that if the Doombug toy is dropped, the production and sale of other Draper toys would increase so as to generate a $16,000 increase in the contribution margin received from these other toys. If all other conditions are the same, the financial advantage (disadvantage) from discontinuing the production and sale of Doom Bugs would be:

Answers

Answer:

the financial disadvantage is -$6,000

Explanation:

The computation of the financial advantage or disadvantage is as follows

= Lost of the contribution margin + avoidable fixed cost + increase in contribution margin

= -$30,000 + $8,000 + $16,000

= -$6,000

It should not be dropped as the saving cost is lower than the contribution loss

Hence, the financial disadvantage is -$6,000

Bad Brad's BBQ had cash flows for the year as follows ($ in millions): CASH RECEIVED FROM: Customers $ 3,100 Interest on investments 220 Sale of land 110 Sale of common stock 550 Issuance of debt securities 2,500 CASH PAID FOR: Interest on debt $ 320 Income tax 150 Debt principal reduction 1,450 Purchase of equipment 4,400 Purchase of inventory 900 Dividends on common stock 190 Operating expenses 800 Bad Brad's would report net cash inflows (outflows) from financing activities in the amount of: Multiple Choice $1,520. $(1,520). $1,260. $1,410.

Answers

Answer:

Net cash inflow from financing activities $1,410

Explanation:

The computation of the net cash inflows or outflows from financing activities is shown below

Cash flow from financing activities

Sale of common stock $550

Issuance of debt securities $2,500

Less debt principal reduction -$1,450

Less dividend on common stock  -$190

Net cash inflow from financing activities $1,410

Hence, the last option is correct

The Fresh Fish sushi restaurant opened a year ago in Mahwah, NJ. Assume the sushi market operates in perfect competition and the timeframe is the short run. Suppose sushi restaurants are earning economic profits. New competitors will ___ the market; the overall quantity of sushi available in Mahwah will ___ and Fresh Fishes share of the market will ___

Answers

Incomplete question. The options:

a. Enter, decrease, increase

b. Enter, increase, decrease

c. Enter, increase, increase

d. Exit, decrease, decrease

Answer:

b. Enter, increase, decrease  

Explanation:

What happens basically in this scenario is what we find in real life when a company launches a very successful product or service, other existing or previously not existing companies may begin to offer the same type of service (eg Uber's ride-sharing service).

So as The Fresh Fish makes economic profits, this will attract new competitors to enter the sushi market; thereby making the overall quantity of sushi available in Mahwah to increase because of the increase in sellers and Fresh Fishes' share of the market will decrease.

Luker Corporation uses a process costing system. The company had $162,500 of beginning Finished Goods Inventory on October 1. It transferred in $839,000 of units completed during the period. The ending Finished Goods Inventory balance on October 31 was $160,200. The entry to account for the cost of goods sold in October is:

Answers

Answer and Explanation:

The journal entry for cost of goods sold is as follows:

Cost of goods sold Dr $841,300

      To Finished goods inventory $841,300

(Being the cost of goods sold is recorded)

The value of cost of goods sold is

= $162,500 + $839,000 - $160,200

= $841,300

Here the cost of goods sold is debited as it increased the expense while the finished goods inventory is credited as it decreased the assets

When preparing the bank reconciliation for Mac's
Flower Shoppe, the following items were noted by
the accountant on the bank statement for June:
Deposits in transit $1,430; Outstanding checks $580;
Bank service charges $76; and a NSF check returned
by the bank $200. What is the adjusted cash balance
per the books if the accounting records initially
showed a balance of $2,100 on June 30?

Answers

Answer:

$1,824

Explanation:

  Adjusted cash balance per the books

Previous balance                    $2,100

Less: Bank charges                $76

         Cancelled NF Check    $200

Adjusted cash balance          $1,824

Thus, the adjusted cash balance  per the books if the accounting records initially showed a balance of $2,100 on June 30 is $1,824

The stock price of Bravo Corp. is currently $100. The stock price a year from now will be either $160 or $60 with equal probabilities. The interest rate at which investors invest in riskless assets is 6%. Using the binomial OPM, the value of a put option with an exercise price of $135 and an expiration date 1 year from now should be worth __________ today.

Answers

Answer:

$38.21

Explanation:

The computation of the value of put option is shown below;

Hedge ratio is

= (Pay off in case price appreciates - Pay off in case of price depreciates) ÷ (Appreciated price - Depreciated price)

= (Max[$135 - $160, $0] - Max[$135 - $60, $0]) ÷ ($160 - $60)

= ($0 - $75) / $100

= -0.75

Now, Price of Put option is

= -Hedge ratio × {Appreciated price ÷ (1 + risk free rate) - Present stock price}

= -(-0.75) × {$160 ÷ (1 + 6%) - $100}

= $38.21

The value of a p value. In a critical commentary on the use of significance testing, Lambdin (2012) explained, "If a p < .05 result is ‘significant,’ then a p = .067 result is not ‘marginally significant’" (p. 76). Explain what the author is referring to in terms of the two decisions that a researcher can make.

Answers

Answer:

The author is referring to the acceptance or rejection of the null hypothesis because of significance testing.

Explanation:

In significance testing, if the result is statistically significant with p < 0.05, the conclusion is that it is not probably caused by chance.   Since statistical significance indicates a strong evidence against the null hypothesis, the null hypothesis is rejected by the researcher, and the alternative hypothesis is accepted.  But, if the p = 0.67, the result is said to be not marginally significant, and the null hypothesis is not rejected.  These two conclusions mean that the researcher's rejection or acceptance of a null hypothesis is decided by a thin margin, and this is why wrong conclusions can be made at times.

Zibb is a transnational electronics company based in Germany. It has factories in China, Mexico, and India. The company aims to streamline its manufacturing operations for maximum efficiency and profit. To this end, Zibb adopts the best manufacturing and packaging practices from around the world. This also leads to the creation of a global mind-set that adopts ideas without regard to their origin. Which of the following international orientations has Zibb adopted?
A) The polycentric orientation
B) The regiocentric orientation
C) The geocentric orientation
D) The ethnocentric orientation

Answers

It’s C) The geocentric orientation

I hope this helped out, have a nice day! :)
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