Answer: Buy 18 contracts
Explanation:
Hedging against the risk involved in an investment means the use of market strategies or financial instruments to offset risk.
When there is a drop in the market value, any loss that is incurred on the portfolio will have to be offset by the long puts gain. This implies that 10 put contracts will have to be required for hedging. This is calculated as:
= $350,000/(350 × 100)
= $350,000/35,000
= 10 contracts
Since the portfolio has a computed beta factor of 1.8, we then multiply 10 by 1.8. This will be:
= 10 × 1.8
= 18 contracts.
Which of the following statements about the waiver-of-premium provision in life insurance is true?
A) Because the probability of becoming disabled exceeds the probability of premature death, the cost to include this provision is usually prohibitive at younger ages.
B) Premiums are usually waived if the insured becomes partially disabled.
C) Life insurance protection continues in force during a period of disability, but dividends cease and cash values are reduced.
D) The disability must occur before a stated age, such as 65, for premiums to be waived.
Answer:
Correct Answer:
D) The disability must occur before a stated age, such as 65, for premiums to be waived.
Explanation:
In Life insurance, the individual insured against bad events that may likely occur in his or her life through an insurance company. This would led to the company to pay his beneficiary or the individual in question if such event happened.
For waiver-of premium to occur in a life insurance,the disability of the individual must occur before the age of 65 years which is assumed to be the retirement age.
How much does one need to have to open a bank
Control activities constitute one of the five components of internal control described in the COSO model. Control activities do not encompass:________
a. Performance reviews
b. Information processing
c. Physical controls
d. An internal auditing function
Answer:
d. An internal auditing function.
Explanation:
COSO is an acronym for Committee of Sponsoring Organizations, it was established by five private organizations comprising of the largest finance, auditing, and accounting oversight committees in 1985 in the United States of America.
Control activities constitute one of the five components of internal control described in the COSO model. Control activities do not encompass an internal auditing function. The control activities are the strategic approach or plans and internal controls used by managers to reduce the high risks. These control activities include performance reviews, information processing, physical controls etc.
"A client surrenders a variable annuity contract 5 years after purchase because of poor performance. The customer invested $50,000 and redeemed it when the NAV was $40,000, however the customer only received $37,000 because a $3,000 surrender fee was imposed. The tax consequence is:"
Answer: D. $10,000 deductible ordinary loss and $3,000 non-deductible loss
Explanation:
Should a person surrender a variable annuity early, their cost basis will be the amount they invested to get the annuity and the redemption amount will be considered as sales proceeds. If the sales proceeds are less than the cost basis, this is a loss and will be treated as a deductible ordinary loss.
The surrender fee will not however be treated as an deductible loss meaning that in this case $3,000 would be a non-deductible loss and $10,000 would be a deductible ordinary loss.
sun inc factors 2,000,000 of its accounts receivables withou recourse for a finance charge of 5%. the company retains equal to 10% of the accounts recevable for possible adjustments. sun estimates of the recourse liabilitty at 75,000. What would be recorded as gain or loss on the transfer of receivables?
Answer:
$100,000
Explanation:
Calculation for What would be recorded as gain or loss on the transfer of receivables
Account receivable 2,000,000
Less Cash 1,700,000
(2,000,000*85%)
Due from Factor account 200,000
(2,000,000*10%)
Loss on sales of receivable $100,000
Therefore What would be recorded as gain or loss on the transfer of receivables will be $100,000
Suppose that Paolo divorces Sharon and leaves the family without paying alimony or child support. Sharon must now support her two children alone,
so she begins working full time and earns a total of $16,000. Are Sharon and her children living in poverty?
O Yes
O no
Answer:
yes, based on chart and the number of children. her income level is well bow poverty. if you multiple the number in household under 65 related the income level should be well above 16000
Rashad consistently went above and beyond to meet his personal deadlines and to help other team members to ensure a recent product launch was completed on time. His manager was impressed and offered Rashad the opportunity for a coveted leadership position on the next generation product team. The manager's action is consistent with _______ justice. distributive restorative customary reparative frontier
Complete Question:
Rashad consistently went above and beyond to meet his personal deadlines and to help other team members to ensure a recent product launch was completed on time. His manager was impressed and offered Rashad the opportunity for a coveted leadership position on the next generation product team. The manager's action is consistent with _______ justice.
Group of answer choices.
A. restorative
B. customary
C. distributive
D. frontier
E. reparative
Answer:
Distributive.
Explanation:
In this scenario, Rashad consistently went above and beyond to meet his personal deadlines and to help other team members to ensure a recent product launch was completed on time. As a result of this, his manager was impressed and offered Rashad the opportunity for a coveted leadership position on the next generation product team. The manager's action is consistent with distributive justice.
Distributive justice can be defined as the just and fair allocation of resources among a large group of people. It is mainly focused on the use of discretion as opposed to administrative laws, policies or procedures.
Hence, Rashad was offered the much coveted position by his manager not because he was entitled to it by law but as a result of distributive justice being used by the manager.
The manager's action is consistent with distributive justice. Thus the option C is correct.
What is distributive justice ?Distributive justice is the social allocation of resources. It is related to administrative laws and has been used in social sciences and psychology.
Distributive justice is of the 5 types equality, equity, power, need, and responsibility. As Rashad's manager offers him the opportunity to co0nvert the leadership position for the team of next-generation, his action is consistent with distributive justice.
Find out more information about Rashad.
brainly.com/question/5527001.
This question is incomplete.
The Complete Question:
Rashad consistently went above and beyond to meet his personal deadlines and to help other team members to ensure a recent product launch was completed on time. His manager was impressed and offered Rashad the opportunity for a coveted leadership position on the next generation product team. The manager's action is consistent with _______ justice.
Group of answer choices.
A. restorative
B. customary
C. distributive
D. frontier
E. reparative
The discount rate assigned to an individual project should be based on: Group of answer choices the firm's weighted average cost of capital. the actual sources of funding used for the project. the current risk level of the overall firm. the actual sources of funding used for the project. the estimated riskiness associated with the individual project.
Answer:
none of the choices are correct
Explanation:
When the discount rate assigned for an individual project then it should be based on the risk i.e attached to the fund use needed by the project
There were various cases when a risky firm invested in a less risky project also if the same cost of capital is used so the firm could alter the decision of an investment in a negative manner
Therefore none of the choices are correct
Listed below are selected line items from the Cost of Quality Report for Watson Products for last month.
Category Amount
Rework $725
Equipment maintenance 1,154
Product testing 786
Product repair 695
What is Watson's total prevention and appraisal cost for last month?
Answer:
$1,940
Explanation:
Prevention cots are the costs incurred before the actual production in the design and implementation phase to prevent problems associated with the quality of a product . Examples are the training and the development cost.
Appraisal cost are quality control cost incurred after production but before products are dispatched to the customers , meant to ensure that the products meet up with the required standard to satisfy customers need. Example are the testing and the inspection test.
The total prevention and appraisal cost for last month for Watson are
Prevention cost -
Equipment maintenance - 1,154
Appraisal cost
Product testing - 786
Total 1,940
• risk free rate: 1.75%
• expected rate of return for the market: 9.5%
• Beta of VZ (you need to research this factor)
• VZ total debt, interest and shares issued can be found in VZ financial statements
• assume market value of all debt is 100% of face(par) value.
• tax rate is 20%
• VZ stock price: $55
• initial investment: 4,500,000
• year 1 cash flow: 1,100,000
• year 2 cash flow: 1,200,000
• year 3 cash flow: 1,350,000
• year 4 cash flow: 1,550,000
• year 5 cash flow: 1,750,000
BASED ON THIS INFORMATION CALCULATE THE FOLLOWING
1. cost of equity
2. after tax cost of debt
3. weighted average cost of capital (WACC)
4. net present value of the investment (NPV)
5. internal rate of return of the investment (IRR)
6. payback period of the investment
Answer:
lol fizzy shook purl p GTG j he
Incident action planning and strategic communication planning
A. should be contracted to incident action planning specialists during emergency responses.
B. are both managed by the planning section chief.
C. have no relationship.
D. are related because the first step to each is understanding the situation.
Answer:
D. are related because the first step to each is understanding the situation.
Explanation:
An incident action plan is a course of panning, which aims to resolve all identified phases of incident control within a time limit. it begins foundationally with an understanding of the the situation and objectives built to solve the problems that situation imposes.
Strategic communication planning is the alignment of an organization's core objectives with its communication function. The aim is to drive plans and tactics that would prompt the performance of an organization. It is however pertinent to understand the situation like identifying whom should be communicated to, determining the reasons for the communication etc , which is the first step.
If Sheridan Company issues 7500 shares of $10 par value common stock for $375000, the account Paid-in Capital in Excess of Par Value will be credited for $75000. Common Stock will be credited for $75000. Cash will be debited for $300000. Paid-in Capital in Excess of Par Value will be credited for $375000.
Answer:
Common Stock will be credited for $75000
Explanation:
The journal entry to record the issuance of the common stock is shown below:
Cash Dr $375,000
To Common stock (7,500 shares × $10) $75,000
To Additional paid in excess of par value - common stock $300,000
(Being the issuance of the common stock is recorded)
For recording this we debited the cash as it increased the assets and credited the common stock and additional capital as it increased the equity
Suppose that the current exchange rate between the dollar and peso is $1 equals 10 pesos. If a firm in Mexico wanted to purchase $100,000 worth of U.S. televisions, how many pesos must they exchange? Question 39 options: A) 1,000,000 pesos B) 10,000 pesos C) 11,000,000 pesos D) 100,000 pesos
Answer:
A) 1,000,000 pesos
Explanation:
The computation of the number of pesos must they exchange is shown below:
= Worth of U.S televisions × number of pesos
= $100,000 × 10 pesos
= 1,000,000 pesos
We simply multiplied the worth of U.S televisons with the number of pesos so that the number of pesos exchange could come and the same is to be considered
On January 1, 2018, Martinez Inc. granted stock options to officers and key employees for the purchase of 22,000 shares of the company’s $10 par common stock at $23 per share. The options were exercisable within a 5-year period beginning January 1, 2020, by grantees still in the employ of the company, and expiring December 31, 2024. The service period for this award is 2 years. Assume that the fair value option-pricing model determines total compensation expense to be $340,800.On April 1, 2019, 2,200 options were terminated when the employees resigned from the company. The market price of the common stock was $33 per share on this date.On March 31, 2020, 13,200 options were exercised when the market price of the common stock was $41 per share.Prepare journal entries to record issuance of the stock options, termination of the stock options, exercise of the stock options, and charges to compensation expense, for the years ended December 31, 2018, 2019, and 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)DateAccount Titles and ExplanationDebitCreditJan. 1, 2018Dec. 31, 2018April 1, 2019Dec. 31, 2019Mar. 31, 2020Jan. 1, 2018Dec. 31, 2018April 1, 2019Dec. 31, 2019Mar. 31, 2020Jan. 1, 2018Dec. 31, 2018April 1, 2019Dec. 31, 2019Mar. 31, 2020Jan. 1, 2018Dec. 31, 2018April 1, 2019Dec. 31, 2019Mar. 31, 2020Mar. 31, 2020
Answer:
Date Account titles and explanation Debit Credit
Jan 1, 2018 No entry
Dec 31, 2018 Compensation expense $170,400
Paid in capital - stock option $170,400
($340800 * 1/2)
April 1,2019 Paid in capital - stock option $17,040
Compensation expenses $17,040
($170400 * 2200 / 22000)
Dec 31 ,2019 Compensation expenses $153,360
Paid in capital - stock option $153,360
{($340800 * 1/2) * 19800 / 22000}
Mar 31, 2020 Cash $303,600
(13,200 * $23)
Paid in capital - stock option $204,480
($340800 * 13200 / 22000)
Common stock $132,000
(13200 * $10)
Paid in capital in excess of par $376,080
A broker from Nebraska wants a license in Florida. He takes a written exam of 40 questions and passes 35 of them. The broker has taken advantage of the written agreements between the states for real estate licensing. This is an example of:
Answer:
A mutual recognition agreement between the states of Florida and Nebraska, created for real estate licensing.
Explanation:
A mutual recognition agreement is defined as a situation where 2 more countries recognise conformity examination results of each other. So a person that writes an examination and passes in one location can get a liscence in another country based on his exam results.
In the given scenario a broker from Nebraska wants a license in Florida. He takes a written exam of 40 questions and passes 35 of them.
After passing the exam he is able to obtain a real estate liscence in Florida.
This is an example of Mutual recognition agreement between Nebraska and Florida.
Is a Truck driving on the highway is one of the sixteen careers taught in Texas. Yes or No
ABC Construction enters into a contract to build two homes for brothers Jack and John. The contract specifies that the homes must be completed by April 1. ABC finishes the homes on March 30. This is an example of ______ of the contract.
Answer:
performance
Explanation:
This is an example of performance of the contract. In the context of Law, this refers to the act of doing exactly what was required by the contract that the party has agreed to, which effectively discharges the individual bound to do the act from any future contractual liability. Which in this scenario, since ABC Construction finished building the homes before the due date, they met their obligations and are free from the contract.
In the cartel model Group of answer choices firms believe that price increases result in a very elastic demand, while price decreases result in an inelastic demand for their products. each firm acts as a price taker. one dominant firm takes the reactions of all other firms into account in its output and pricing decisions. firms coordinate their decisions to act as a multiplant monopoly.
Answer:
firms coordinate their decisions to act as a multi-plant monopoly..
Explanation:
A cartel is a group of countries or firms that have reached an agreement to work together in order to influence or decide market prices for goods and services by controlling sales and the level of production or quantity of output.
In the cartel model firms coordinate their decisions to act as a multi-plant monopoly, wherein the level of production or quantity of output is divided into many production plants.
The main purpose of having the cartels do this is to make marginal cost (MC) equal to marginal revenue (MR) in the various production plants, so as to create monopoly profits by making sure each plant has its own cost.
Assume the U.S. government wants to hold the value of the dollar at $1.00 U.S. equals 120 Japanese yen, but it finds that the value of yen is appreciating against the U.S. dollar. What would be an appropriate policy to reverse this trend?
Answer: Buy U.S. dollars.
Explanation:
As the currency market is also controlled by the laws of supply and demand where an increase in demand increases price and a decrease in supply does the same, should the US want to increase the value of the dollar, they should buy more US dollars.
This action would increase the demand for the dollar while reducing the amount of dollars in the market. This will invariably lead to an increase in the price of the dollar all else equal.
"A customer buys 300 shares of ABC at $40, depositing the Regulation T requirement on the 3rd business day after trade date. He holds the position for two months, during which $100 of interest is charged on the debit balance. What is the adjusted debit balance at the end of the two month period?"
Answer:
Explanation:
Given the following :
Number of shares = 300
Cost per share = $40
Interest charge = $100
Total cost of shares = (number of shares * purchase price)
Total cost of shares = 300 * $40 = $12000
The regulation T says an investor cannot borrow more than 50% of the purchase price.
Therefore, 50% of shares cost :
(50/100) * $12,000
0.5 * $12,000
= $6000
Therefore, Adjusted debit balance :
$6000 + $100 = $6,100
Expensive department stores market service and atmosphere while less expensive stores market location and perceived lower prices or credit (check cashing services). This is characteristic of _______________________ .
Answer: Monopolistic competition
Explanation:
Monopolistic competition is described as a competition between firms where they offer similar services but not the same or exact services. This competition is seen in industries where differentiation is possible, example of such industries are restaurant, hairdressers, clothing, TV programs.
a tv retailer suppose that in order to sell a number of tvs the price per unit must follow the model p=600-0.3n
An arrangement where a property developed by the seller is sold to a buyer. The seller retains occupancy of the premises by signing a lease with the buyer. The seller, now the tenant, pays taxes, utilities, insurance and operating costs. This is called a ___________. This is a common practice for Walmart and Rite-Aide and many other businesses Group of answer choices sale rental agreement net lease investment lease-purchase option nome of the other answers
Answer:
B. net lease investment
Explanation:
The net lease investment is a type of commercial real estate arrangement where the tenant of a property is expected to pay rent along with either taxes, insurance, and maintenance. There are different types of net lease agreements. We have the;
1. Single net lease agreement where the tenant is expected to pay rent along with property taxes. The landlord pays for the operating costs of the property.
2. Double net lease agreements where the tenant, also known as lessor pays the rent, property taxes, and insurance. The landlord pays for the operating costs.
3. The triple net lease agreements where the tenant pays the rent, property insurance, and taxes, as well as the operating costs of maintenance.
Most businesses in the United States such as FedX, McDonald's, Walmart, and many others use this kind of real estate arrangement.
Which husband and wife team conducted time and motion studies, worked for General Electric to develop foot-pedal trash cans and redesign shelves in refrigerators, and had their lives documented in the book Cheaper By the Dozen
Answer:
Lillian and Frank Gilbreth.
Explanation:
Lillian and Frank Gilbreth are the husband and wife team that conducted time and motion studies, worked for General Electric to develop foot-pedal trash cans and redesign shelves in refrigerators, and had their lives documented in the book Cheaper By the Dozen.
They coined the word "Therblig" in order to identify the basic elements of human activity and motion in the study of time and motion which is typically aimed at improving the productivity and efficiency of workers while reducing fatigue simultaneously.
Land is purchased for $256,000. Additional costs include a $15,300 fee to a broker, a survey fee of $2,400, $1,750 to construct a fence, and a legal fee of $8,500. What is the cost of the land
Answer:
The answer is $282,200
Explanation:
The cost of an asset includes the purchase price (cost of acquisition) and the cost neccessary to bring it usage.
For example, for cost of acquiring a machinery, the purchase price minus any trade discount plus cost of transportation, plus any tax paid on acquisition plus cost of installation etc.
But for the acquisition of land, all the cost except the cost of fence of the land will be considered.
So we have:
Purchase price. $256,000
Broker's fee. $15,300
Survey fee. $2,400
Legal fee $8,500
Cost of the land. $282,200
Lew's has 500 bonds outstanding with a price quote of 98.6. There are also 12,000 shares of common stock selling for $47 a share and 5,000 shares of preferred stock at $70 a share. What is the weight of equity
Answer:
$963300
Explanation:
Number of bonds = 500
Quote price of bond = 98.6
number of common stock shares = 12000
price of common stock share = $47
Number of preferred stock shares = 5000
price of preferred stock shares = $70
Calculate the weight of Equity
market value of bonds = 500 * 98.6 = $49300
market value of common stock = 12000 * 47 = $564000
market value of preferred stock = 5000 * 70 = $350000
therefore the weight of equity of Lew's
= value of bonds + value of common stock + value of preferred stock
= 49300 + 564000 + 350000 = $963300
An HR manager asked every candidate during an interview to describe a situation in the past in which they had to display their leadership abilities even though they were not a formal leader, discuss what they did, and describe the result. This is an example of which external assessment method
Answer:
Situational interview.
Explanation:
In this scenario, an Human Resource (HR) manager asked every candidate during an interview to describe a situation in the past in which they had to display their leadership abilities even though they were not a formal leader, discuss what they did, and describe the result. This is an example of situational interview.
Situational interview can be defined as the process in which job applicants are made to describe or narrate how they acted in the past in a circumstance or conflict situation and how they were able to overcome the challenges.
Bank laying down norms for bank is : SBI, RIB, RBI or RBG
Answer:
The answer is "RBI"
Explanation:
The RBI was formed in 1935, to comply only with RBI Act, it is also known as the central bank of India, throughout order to generate financial security in India, it implements fiscal policy, as well as regulates its exchange rates and higher compensation of the whole nation.
Its primary goal will also consist of monitoring India's separate bank operations in the money markets. Its primary focus also is on the publisher of new bills. It has been developed to be the bank of a bank manager as well as the state bank.
The quantity of money has no real impact on things people really care about like whether or not they have a job. Most economists would agree that this statement is appropriate concerning Group of answer choices both the short run and the long run. the short run, but not the long run. the long run, but not the short run. neither the long run nor the short run.
Answer:
the long run, but not the short run.
Explanation:
Most people would like to earn a lot of money but it's unclear about the advantages of earning a large salary. They can afford more pleasures once they get rich, but a recent study indicates wealthier people seem to be less able to cherish the little things in life. Economist suggests that once reaching a threshold the quantity of money don't interest the people anymore but this is a case when wealth is acquired in a long period. People to fulfill their immediate goals gave significant importance to the quantity of money.
The manufacturer of a certain engine treatment claims that if you add their product to your engine, it will be protected from excessive wear. An infomercial claims that a woman drove 6 hours without oil, thanks to the engine treatment. A magazine tested engines in which they added the treatment to the motor oil, ran the engines, drained the oil, and then determined the time until the engines seized. Complete parts (a) and (b) below. (a) Determine the null and alternative hypotheses that the magazine will test. Upper H 0: mu equals 6 Upper H 1: mu less than 6 (b) Both engines took exactly 11 minutes to seize. What conclusion might the magazine make based on this evidence? A. The infomercial's claim is not true. B. The infomercial's claim is true.
Answer: (a)Null hypothesis: [tex]H_0:\mu=6[/tex]
Alternative hypothesis: [tex]H_a:\mu<6[/tex]
(b) Conclusion: A. The infomercial's claim is not true.
Explanation:
Let [tex]\mu[/tex] be the mean number of hours drove without oil .
(a) Since the woman drove 6 hours without oil because of the engine treatment.
We expect that this is too high to drive without oil
So, the hypothesis in this case would be
Null hypothesis: [tex]H_0:\mu=6[/tex]
Alternative hypothesis: [tex]H_a:\mu<6[/tex]
(b) 11 minutes is much lower than 6 hours.
That means it supports the alternative hypothesis.
Conclusion: A. The infomercial's claim is not true.