EOC Problems 15-4 eBook Problem 15-4 Suppose that you bought a call with a strike price of $29 for $4, and the underlying asset is now selling for $39. Strike Price $29 Premium $4 Stock Price $39 What is the intrinsic value of the call? The intrinsic value of the call is $ Icon Key EOC Problems 15-4 Question 9 of 17 ► Save Question 9 of 17 ▸ Submit Test for Grading
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- opy Normal Bad Good I U A ==ZE E EMerge & Center Conditional Format as Neutral 00 ermat Painter Calculation Check Cell Explanatory... Input Formatting Table- ard Font Alignment Number Styles D. H. Calculate for the cells highlighted in yellow Time Value of Money problems For these problems where interest rate is needed use: 7% Annual investment 2,500 Life of investment (years) 10 #7 Future value Price of car 12,000 Down payment Life of loan (years) 20% 3. # 8 Monthly payment Amount to be received at maturity 25,000 Number of years 10 #9 Amount of annual payment Year: 1 Cash flows (10,000) 2500 2500 2500 2500 2500 #10 Net present value: 3. %24 %24 %24 %2311:52 Investment Appraisal (Year 2 Column 2... Project 1 Project 2 Project 3 8. When calculating NPV will using a higher discount factor lead to ...? A higher NPV A lower NPV The same NPV 9. Which method of investment appraisal would be best for a business that has liquidity problems? NPV ARR ... Activity Chat Teams Assignments More 10Solve the newsvendor problem. Probability 0.2 0.1 0.1 0.2 0.3 0.1 Value 1 2 3 4 Purchase cost c 15 Selling price p Salvage value v 25 10 What is the optimal order quantity? Optimal order quantity IL || ||
- v Question Completion Status: A Click Submit to complete this assessment. Question 20 An analyst estimates that project C's expected rate of return is 10%, your required rate of return of the project C is 7%, what should you do? O None of the listed choices is correct O There is no difference between reject or accept project C O Reject project c O Accept project C O All of the listed choices are correct A Click Submit to complete this assessment. MacBook Air 20 F3 O00 E4 F1 F2 F5 F6 F7 F8 # $ * 2 5 7 8. Q W R T Y F C V * 00 BFIGURE 4.44 A B 0.27 A2 0.73 0.45 0.55 Al (0.5) $8 $0 (0.5) $15 $4 $10 $0 Ⓒ Cengage Leaming > 4.9 Create risk profiles and cumulative risk profiles for all possible strate- gies in Figure 4.44. Is one strategy stochastically dominant? Explain. 4W NNN Q Search in Docum out References Mailings Review View A A- AaBbCcDdEe AaBbCcDdEe AaBbCcDc AaBbCcDdEe AaBb( AabbCeDdE X x No Spacing Heading 1 Heading 2 Normal Title Subtitle th security updates, fixes, and improvements, choose Check for Updates. 1. Following data is given: Total fixed cost OMR 12000 / Selling price OMR 12 / Variable cost OMR 9 Calculate: a. Contribution per Unit b. P/V Ratio c. Break-even point(BEP) in units d. Break-even point(BEP) in Amounts (OMR) e. What will be the amount of sales if it is desired to earn a profit of (a) OMR 6000; (b) OMR 15000?
- 20. What is the intrinsic value and the time value of the call if ABC is trading at 43 and the ABC April 40 call is trading at 4.50? A. Intrinsic value 3; time value 1.50 B. Intrinsic value 3; Time value 4.50 C. Intrinsic value 1.50; time value 3 D. Intrinsic value 4.50; time value 0Activity Frame B r = 11% 0 1 2 3 4 40% Prob Good 20.000 26.000 26.000 26.000 26.000 20,000 (r = 8%) Bad 60% Prob. 20.000 7.000 7.000 0 0Module 02 Written Assiqnment Application of Future Value and Present Value.xlsx - OpenOffice Calc File Edit View Insert Format Iools Data Window Help ABC 《 的, ABC Verdana 10 В I U 三 開 % 0 □ A B G H I 1. Assume an investment of $2,000 today. Calculate the FV of the investment according to eac 6. 7 a. 6 percent compounded annually 8 9. Rate 6% 10 Nper PMT 12 11 12 PV $2,000.00 $0.00 13 FV 14 15 b. 8 percent compounded annually 16 17 Rate 8% 18 Nper 12 19 PMT 20 PV $2,000.00 21 FV 22 23 c. 10 percent compounded annually 24 25 Rate 10% 26 Nper 12 27 PMT 28 PV $2,000.00 29 FV 30 31 d. 10 percent compounded semiannually 32 Rate K Future Value Present Value 33 10% STD Sheet 1/2 PageStyle Future Value
- %24 2 Project: Company Accour X DZL. 7-1 Problem Set: Module Sev X CengageNOWv2 | Online tea x Cengage Learning +| x ow.com/ilrm/takeAssignment/takeAssignmentMain.do?invoker%3&takeAssignmentSessionLocator3&inprogress%3Dfalse eBook Show Me How Horizontal Analysis The comparative accounts payable and long-term debt balances for a company follow. Current Year Previous Year Accounts payable $40,964 $41,800 Long-term debt 45,594 44,700 Based on this information, what is the amount and percentage of increase or decrease that would be shown on a balance sheet with horizontal analysis? Enter all answers as positive numbers. Amount of Change Increase/Decrease Percentage Accounts payable Decrease Increase Long-term debt Check My Work Calculate the change in the amount and divide by the base (older) year amount to determine the horizontal analysis percentages. Previous Check My Work 3:12 PM dp SU prt sc 144 114brary TE(18,3.25,-139.90,100) E F RATE Nper 18 Pmt 3.25 PV Fv Type -139.90 100 Defined Names Formula result = 0.008500381 Help on this function Function Arguments = 18 = = -139.9 = 100 = number 3.25 Formula Auditing ? = 0.008500381 Returns the interest rate per period of a loan or an investment. For example, use 6%/4 for quarterly payments at 6% APR. OK X Fv is the future value, or a cash balance you want to attain after the last payment is made. If omitted, uses Fv = 0. CancelX Paste FILE A1 Clipboard G 6 7 8 • HOME Calibri 4 INSERT BIU 16 Cost of Capital 17 ▶ ⠀ 14 Net operating income 15 READY Attempt(s) A 1 Laurman, Inc. is considering the following project: 2 Required investment in equipment 3 Project life 4 Salvage value 5 11 Font PAGE LAYOUT The project would provide net operating income each year as follows: Sales Variable expenses 9 Contribution margin 10 11 12 Depreciation 13 Total fixed expenses À À A- Fixed expenses: Salaries, rent and other fixed out-of pocket costs Sheet1 FORMULAS Wrap Text === **Merge & Center Alignment X ✓ fxx Laurman, Inc. is considering the following project: Гу 18 1. Compute the annual net cash inflow from the project. 19 (+) DATA B Comparison of Capital Budgeting Methods - Excel VIEW REVIEW 18% $ 0 $ General - $ %, Number с +.0 .00 .00 .0 1,750,000 5 years 225,000 520,000 350,000 $ 1 $ Conditional Format as Cell Formatting Table Styles Styles $ D 20 2. Complete the following timeline to compute the net present value of the…