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NikAS [45]
2 years ago
8

Which of the following is NOT true? Group of answer choices A call option gives the holder the right to buy an asset by a certai

n date for a certain price A put option gives the holder the right to sell an asset by a certain date for a certain price The holder of a forward contract is obligated to buy or sell an asset The holder of a call or put option must exercise the right to sell or buy an asset
Business
1 answer:
Setler79 [48]2 years ago
3 0

Answer:The holder of a call or put option must exercise the right to sell or buy an asset.

Explanation:The holder of a right or put option has the right to exercise that power but it is not a mandatory right,he or she can decide not to exercise that power.

All other options are correct, a call or gives the holder the right to buy an asset at a certain date and at a specific price.

A put option gives the holder the right to sell an asset at a specific date and price.

The holder of a forward contract is obligated to buy or sell an asset.

You might be interested in
g Western Electric has 27,500 shares of common stock outstanding at a price per share of $70 and a rate of return of 13.45 perce
Ede4ka [16]

Answer:

The WACC is 10.93%

Explanation:

The WACC or weighted average cost of capital is the cost of a firm's capital structure. The capital stricture may be formed of the following components namely debt, preferred stock and common stock. The WACC assigns the weights to each of these components based on the finance provided by each of the above components as a proportion of total capital structure or total assets.

The WACC is calculated by taking the market value of each component. The formula for WACC is as follows,

WACC = wD * rD * (1-tax rate)  +  wP * rP  +  wE * rE

Where,

  • w represents the weight of each component
  • r represents the cost of each component
  • D, P and E represents debt, preferred stock and Common stock respectively.
  • We take after tax cost of debt. So we multiply rD with (1-tax rate)

Debt = 377000 * 106.5%  = $401505

Preferred stock = 6850 * 90.50  =  $619925

Common stock = 27500 * 70  = $1925000

Total assets = 401505 + 619925 + 1925000  = $2946430

WACC = 401505/2946430 * 7.81% * (1-0.35)  +  619925/2946430 * 6.9%  +

1925000/2946430 * 13.45%

WACC = 0.1093 or 10.93%

6 0
2 years ago
A number of things organizations can do prior to change to prepare employees include which of the following?
natulia [17]

Answer:

The correct answer is Allow employees to particpate.

Explanation:

Following a strategy in which employee participation is promoted does not imply that all problems are delegated to them, or rather unimportant problems; It consists in the active intervention of workers when identifying, analyzing and solving problems that make it difficult to achieve business objectives. It is important that employees get involved in the challenges of the organization to which they belong, and in the same way that they feel satisfied by a positive performance, they must also be aware and persistent in the face of adverse situations that affect the performance of the company.

6 0
2 years ago
Renata and Danuta would like to form a business providing take-out meals to homebound destitute residents of Las Vegas. The meal
Xelga [282]

Answer:

A

Explanation:

Nonprofit corporation are corporations that do not earn profits. Revenue earned are usually used in the running of the business or for they are donated.

These type of corporations are usually tax exempt. Their activities usually range from religious, charitable or scientific activities

Renata and Danuta are running a charitable organisation that would be catering for homebound destitute

8 0
2 years ago
Question 2 The ledger of Metlock, Inc. on March 31 of the current year includes the selected accounts below before adjusting ent
puteri [66]

Answer:

The ledger of Metlock, Inc.

March 31 Adjusting Entries

Sr. No                           Particulars                Debit             Credit

1                  Depreciation Expense            $1092

                     Accumulated Depreciation                       $ 1092  

Depreciation for 3 months =  $364*3= $ 1092

2.                      Unearned Rent Revenue  8060

                                          Rent Revenue Earned         8060  

Half of the unearned rent revenue was earned during the quarter.

3.            Interest Expense                  $130

                             Interest Payable                              $ 130

Interest of $520 is accrued on the notes payable. For the quarter it will be

$ 520/4-=$ 130

4.                 Supplies Expense         2885

                                Supplies                                  2885

Supplies on hand total $1,105.  Supplies were $ 3900. The amount of supplies used were $ 3900- $ 1015= $ 2885

5.                Insurance Expense         $1560

                             Prepaid Insurance                   $ 1560        

Insurance expires at the rate of $520 per month. For the three months it would be $ 520* 3= $1560.

8 0
2 years ago
You and two partners start a company. However, your partners play no role in running the company. You spend all your time managi
GalinKa [24]

Answer:

The correct answer is letter "D": Opportunity cost.

Explanation:

Opportunity cost is described as the return of the choice selected over the potential return that could have been obtained from the choice left  behind. It represents the return of the option chosen compared to the choice forgone. Opportunity costs is also defined as the return of the best next available option.

4 0
2 years ago
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