You establish a straddle on Walmart using September call and put options with a strike price of $96. The call premium is $7.80 and the put premium is $8.55.
a. What is the most you can lose on this position? (Input the amount as positive value. Round your answer to 2 decimal places.)
b. What will be your profit or loss if Walmart is selling for $96 in September? (Input the amount as positive value. Round your answer to 2 decimal places.)
c. You buy a share of stock, write a one-year call option with X = $19, and buy a one-year put option with X = $19. Your net outlay to establish the entire portfolio is $18.50. What must be the risk-free interest rate? The stock pays no dividends. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Answers

Answer 1

The correct answer to these questions should be:

a. $16.35

b. Loss of $16.35

c. $112.35 and $79.65

a - The most you can lose in this position should be:

$7.80 + $8.55 = $16.35

b -  If Walmart is selling for $96 in September then:

Final value - Original investment

= (ST − X) − (C + P) = $0 − $16.35 = −$16.35

c - There are two break even prices:

ST > X

(ST − X) − (C + P) = (ST − 96) − $16.35 = $0

ST = $112.35

ST < X

(X - ST) − (C + P) = (96 − ST) − $16.35 = $0

ST = $79.65

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Related Questions

which of the following is classified as investment in national income (gdp) accounting? group of answer choices building a new factory buying a 10-year-old home depositing money in a bank purchasing corporate stocks and bonds

Answers

The output of an economy is measured by its Gross Domestic Product. National income accounting is a term used to describe the calculations. C + I + G + (X-M) is the expenditure method's formula for GDP.

A. constructing a brand-new factory is the best response.

What does the term "gross domestic product" mean?

For instance, Country B's GDP would be $35 if it produced five bananas worth $1 each and five backrubs worth $6 each in a single year. Country B's GDP would be $40 if the price of bananas increased to $2 the following year while production remained constant.

How is GDP determined?

GDP is the sum of private consumption, gross private investment, government spending, and investment (exports minus imports). The country's national statistical agency typically uses an international standard to calculate GDP.

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professor peglers research efforts focus on how the use of heuristics influences the way people assess financial risks

Answers

The focus of Professor Pegler's study is on how heuristic use affects how people evaluate financial risks. his studies best illustrate cognitive psychology

A heuristic is a mental shortcut used by people to make judgements quickly and effectively in psychology. In this situation, how you feel in response to a particular stimulus affects the choices you make.

Cognitive psychology is a branch of psychology that focuses on how people think.

The cognitive approach to psychology focuses on the interactions between thinking, emotion, creativity, and problem-solving abilities to impact how and why you think the way you do.

In the discipline of behavioural finance, heuristics and biases have been the subject of extensive investigation.

However, most studies only look at the effects of heuristics and biases in a lab setting, thus they neglect to take into account the fact that financial decisions are likely to be made somewhat differently in a lab setting than in the real world.

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In determining the optimal media mix for an advertising campaign, the best sources of information would be:
A) media representatives
B) creatives and traffic managers
C) account planners and account executives
D) media planners and media buyers

Answers

In determining the optimal media mix for an advertising campaign, the best sources of information would be: media planners and media buyers.

What does a media planner do?Most advertising organizations have a media section where media strategists work. They are in charge of placing advertisements where and when they will reach the intended audience for the least amount of money. The watching and reading preferences of the public are gathered by media planners.Media planning often involves finding and choosing the best media outlets to employ for a client's brand or product. Finding the right media mix to accomplish the customers' objectives is the aim of media planning.A bachelor's degree in a related field of study, such as business, market research, communication studies, or marketing, is often required for media planners. Media planners may be required to obtain a master's degree in media studies for certain top roles.

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options markets are highly liquid and offer an easy method for trading because of: multiple choice question. standardized contracts government regulations low tax consequences

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Because of their standardized contracts, options markets are quite liquid and provide a simple means of trading.

What's a standardized contract?

A standardized contract is an agreement in law between two or more people in which one of the parties has established parameters that are primarily non-negotiable. A standard form contract is an agreement between two parties in which one side sets the terms and conditions while the other has little or no control over doing so (also known as a contract for adhesion, a leonine contract, a take-it-or-leave-it deal, or a boilerplate contract).

What is a typical form contract example?

The majority of parking tickets, theater tickets, package receipts, and purchase slips from debit cards are standard form agreements. Although "written standard forms of business" are acknowledged by the Unfair Contract Terms Act of 1977, there is no official definition of a standard form contract in this nation.

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betty, an american, works for a knitwear company in new jersey. her manager, ruth, sends her on an overseas assignment to handle operations at the company's newly acquired plant in japan. which of the following, if true, could have most likely led to betty being chosen for the assignment?

Answers

Being ahead of the pack and accomplishing goals are more important to Nate.

Why is achieving goals so important?

By making goals, we may go forward in life. Our goals provide us a direction to travel in. Setting goals enables us to keep ourselves accountable, even when we fail. When we make goals and work to achieve them, we are able to identify what it is that we truly want in life.

Why is it important to set goals and objectives before hand?

Setting goals makes it necessary for you to plan ahead, which enables you to create an action plan. Even if things don't turn out exactly the way you expected, it's still okay because you can look back, make changes to your plans, and then drive your life toward your objective. Understand that everything is created twice—once in the mind and again in the physical universe.

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question 1: which form of business organization should the group select for the new restaurant and why? what would you tell them? provide the legal reasons that support your recommendation, using the key concepts presented in chapters 21 and 22. who is correct? faye and jet (corporation); spike (partnership); or ed (llc)?

Answers

The form of business organization should the group select for the new restaurant is partnership.

If two or more people decide to open a restaurant jointly, the partnership is the best type of legal form to use. A partnership is a type of business where two or more persons enter into a legal agreement to be co-owners, share in the organization's profits or losses, and divide the duties for managing it.

A partnership is a type of business where two or more persons jointly own the company and are responsible for managing it and for any profits or losses it makes.

National Government Act. The Indian Partnership Act of 1932, Section 4. 4. A definition of "firm name," "partnership," "partner," and "firmship." The relationship between people who have decided to split the earnings from a firm that is operated by all of them acting for all of them is known as a "partnership."

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according to our understanding of integrated marketing communications, which of the following is not an example of one of the 10 rules of integration?

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According to our understanding of integrated marketing communications, of the following is not an example of one of the 10 rules of integration start with a large budget.

How ought a novice to establish a budget?

Set some objectives.

Establish your income.

Establish your costs.

Establish a budget.

Initially, pay yourself!

Be cautious when using credit cards.

Regularly check back.

How do you begin a strict spending plan?

First, figure out your net income. Your net income is the basis of an efficient budget.

Next, keep tabs on your spending.

Step 3 is to make practical goals.

Make a plan in step four.

5. Modify your expenditures to keep inside your spending limit.

Step 6: Regularly review your spending plan.

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which of the following terms deals primarily with the tendency of non-media companies to buy smaller media outlets?

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Conglomeration is the term that deals primarily with the tendency of non- media companies to buy smaller media outlet.

Conglomeration is the term used to describe the method by which a conglomerate is formed, such as when a parent corporation starts to buy out subsidiaries.

A new firm created by conglomeration is frequently a huge, international, multi-industry corporation.

A corporation can diversify its revenue sources through it, which also lowers market risk and the likelihood of takeover.

Conglomerates can cause weaknesses in the parent firm if they are poorly managed because they are distributed too thinly among too many subsidiaries.

Through mergers and acquisitions, conglomerates are formed.

Companies can pay for mergers and acquisitions with cash, by purchasing shares of stock, or by using a combination of the two.

Question

which of the following terms deals primarily with the tendency of non-media companies to buy smaller media outlets?

option

a) Hypercommercialism.

b) Globalization.

c) Conglomeration

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Real GDP is:
A. calculated by adding up only the real number of all items sold in the U.S. regardless of their prices.
B. the value of the production of all final goods and services adjusted for price changes.
C. the value of the production of all final goods and services measured in current prices.
D. the projected future value of GDP.

Answers

Real GDP is the worth of all final good and service production that has been modified for price changes.

What makes GDP so crucial?

The importance of GDP can be attributed to the information it provides regarding the size and health of an economy. Real GDP growth is frequently employed as a gauge of the state of the economy as a whole. Real GDP growth is generally considered a positive indicator of the health of the economy.

The GDP calculation method is?

GDP equals private consumption plus gross domestic product plus government investment plus government spending plus (exports – imports). The national statistical office of the nation typically calculates GDP using the international standard.

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judy owns a bookstore/cafe that has always done pretty well. however, a new competitor recently opened a block away, and judy's business has decreased. which of the following decisions would likely constitute an impermissible action on judy's part?

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Judy constructs a repulsive rumor about her rival and spreads it to her clients.

What is impermissible action?

The forbidden is not permitted. Driving a vehicle at a speed of 100 mph on a highway is forbidden everywhere in the United States. You are allowed to do things that are permissible because they are acceptable, agreeable, or legal. The Company may stop making any additional payments that would otherwise be due under this agreement during the Severance Period and (ii) recover from the Executive any and all payments made under this agreement before the Company learned that the Executive was engaging in Impermissible Activities. A major change in the futures contract's or the commodity's constitution or composition that has occurred since the contract's launch date is referred to as a "material change in content."

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a firm's_____ strategy is an organizational strategy for how it will compete in its primary or main market.

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A firm's business strategy is an organizational strategy for how it will compete in its primary or main market.

Within the area of control, strategic control entails the formula and implementation of the fundamental desires and initiatives taken by using an company's managers on behalf of stakeholders.

A business approach refers to all the selections taken, and moves undertaken with the aid of a commercial enterprise for achieving the bigger imaginative and prescient. knowing what commercial enterprise approach is and how to execute it nicely can help groups end up market leaders in their area.

A enterprise method is a plan that outlines how a employer will gain its desires. there are numerous one-of-a-kind commercial enterprise techniques, however a few common examples include value leadership, differentiation, and consciousness.

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Common issues encountered when moving to public cloud computing include complex pricing arrangements, performance issues, inadequate data security, and _____

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Common issues encountered when moving to public cloud computing include complex pricing arrangements , performance issues , inadequate data security , and vendor lock - in.

What is cloud computing?

The on-demand availability of computer system resources, particularly data storage (cloud storage) and processing power, without direct active management by the user is known as cloud computing. Functions in large clouds are frequently dispersed over several sites, each of which is a data centre. Cloud computing often uses a "pay as you go" model, which can help reduce capital expenses but may also result in unanticipated running expenses for users. Cloud computing depends on resource sharing to accomplish coherence. A wide range of use cases, including data backup, disaster recovery, email, virtual desktops, software development and testing, big data analytics, and customer-facing web apps, are being used by businesses of every size, type, and sector.

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If an oligopoly is faced with a kinked demand curve which is relatively elastic above and relatively inelastic below the going price, then it will:
(a) increase total revenue by increasing price, but decrease total revenue by decreasing price.
(b) increase total revenue by decreasing price, but decrease total revenue by increasing price.
(c) increase total revenue by either increasing or decreasing price.
(d) decrease total revenue by either increasing or decreasing price.

Answers

(d) decrease total revenue by either increasing or decreasing price.

kinked-demand curve model of oligopoly:

This model was developed independently by Prof. Paul M. Sweezy on the one hand and Profs. R. C. Hall and C. J. Hitch on the other hand.

The assumptions of kinked-demand curve model of oligopoly are:

(i) In an oligopolistic market, there aren't many companies.

(ii) The businesses are making nearly identical products.

(iii) The companies don't invest in advertising, and the quality of the goods stays the same.

(iv) The product has previously been assigned a set of pricing, and these prices are now in effect.

Because oligopolistic prices may shift seldom, the kinked-demand curve model of oligopoly can help to explain why.

Due to the fact that an oligopoly's kinked demand curve is highly elastic above and relatively inelastic below the going price.

This means that because demand is inelastic and price declines, the response to a price rise is less than the response to a price decrease. As a result, either an increase in price or a decrease in price will reduce overall income.

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Firms that use taper integration also use _____ when they rely on outside-market firms for some of their supplies.a) backward horizontal integrationb) forward vertical integrationc) forward horizontal integrationd) backward vertical integration

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The Firms that use taper integration also use backward vertical integration when they rely on outside-market firms for some of their supplies.

What is meant by vertical integration?An structure in which a corporation's supply chain is integrated and owned by that company is referred to as vertical integration in the fields of microeconomics, management, and international political economy. The business structure known as vertical integration involves a company controlling various supply chain stages. To have more control over the production process, the business tries to bring processes in-house rather than relying on outside vendors. For businesses like Amazon, Apple, Ferrero, Tesla, and NVidia, vertical integration has been a key component of their strategies ever since 2021. We explain why major corporations are altering their strategy in this post. By integrating vertically, businesses can do away with high markups and other expenses related to brokers or wholesalers.

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Luker Corporation uses a process costing system. The company had $169,500 of beginning Finished Goods Inventory on October 1. It transferred in $846,000 of units completed during the period. The ending Finished Goods Inventory balance on October 31 was $167,200. The entry to account for the cost of goods sold in October is:
Multiple Choice
Debit Cost of Goods Sold $846,000; credit Finished Goods Inventory $846,000.
Debit Cost of Goods Sold $848,300; credit Finished Goods Inventory $848,300.
Debit Cost of Goods Sold $848,300; credit Work in Process Inventory $848,300.
Debit Finished Goods Inventory $167,200; credit Cost of Goods Sold $167,200.
Debit Finished Goods Inventory $846,000; credit Work in Process Inventory $846,000.

Answers

Debit $848,300 for the cost of goods sold; credit The item to reflect the cost of goods sold in October is Finished Goods Inventory $848,300.

Cost of Goods Sold Debit 848,300

(169,500+846,000-167,200) = 848,300 Credit - Finished Goods Inventory

The direct expenses incurred in creating the products a business sells are referred to as COGS. The cost of the materials and labor used directly to make the good are included in this sum. Indirect costs like those associated with the sales force and distribution are not included.

Due to the fact that COGS is deducted from revenues to calculate gross profit, it is a crucial financial statement indicator. The gross profit is a profitability indicator that assesses a company's capacity to effectively manage its work force and resources during the production process.

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term loans: question 8 options: 1) are available from commercial banks, insurance companies, pension funds, commercial finance companies, and manufacturer's financing subsidiaries 2) may be repaid on a quarterly, semiannual, or annual schedule 3) are capital expenditure loans with a maturity of more than one year 4) can be secured or unsecured 5) are accurately described by all of the above

Answers

Term loans are said to be available from commercial banks, insurance companies, commercial finance companies, pension funds, and manufacturer's financing subsidiaries, and it may be repaid on a quarterly, semiannual, or annual schedule.

The term loans are said to provide the borrowers with a lump sum of cash which is upfront in exchange for specific borrowing terms. So, the term loans are normally meant for established small businesses with sound financial statements.

Term loans are also available for certain institutes such as the  commercial banks. However, the borrowers agree in order to pay their lenders a fixed amount over a certain repayment schedule.

Hence, the term loans come in several varieties, which usually reflects the lifespan of the loan.

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Due to the large number of products that they are responsible for selling, wholesalers' order takers should focus on ______. (Check all that apply.)

Answers

Wholesalers' order takers should focus on placing orders, confirming that orders have been filled on time, and maintaining close contact with customers.

Who are a retailer and a wholesaler?

Retailers sell products directly to end users, generally in limited quantities, to highlight the main differences. Wholesalers, on the other hand, sell products to other retail business owners and individuals who, in turn, sell the products to the final consumer.

What do you mean by wholesaling?

Purchasing items in bulk at a reduced cost from a manufacturer and selling them to a retailer at a higher price for them to repackage and then sell to customers in smaller quantities at an even higher price is known as wholesaling.

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If the marginal utility of each good consumers buy does not diminish but remains constant, we should witness consumers: a. buying no goods at all. b. spending all of their income on the good with the highest MU.
c. buying one of each good.
d. buying only the least expensive goods.
e. become indifferent to what goods they buy.

Answers

With each extra unit of a good consumed, the marginal utility will decrease, according to the concept of decreasing marginal utility.

What is the marginal significance?

When anything is described as peripheral, it is insignificant or small. This is a slight improvement over October. Synonyms: negligible, little, low, and inconsequential more adjective synonyms for marginal.

What is meant by marginal at best?

Of a value, or of a quality that embodies a value, that borders on being intolerable or likely to cause exclusion from just a group or a category. His writing skills were at most marginal, and since the utility of each thing customers purchase does not decline but instead stays constant, we should observe consumers.

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Companies perform aggregation along the three dimensions of:
A) products, labor, customers.
B) time, suppliers, services.
C) products / services, labor, time.
D) time, products, customers.

Answers

Option C is correct , products / services, labor, time are the three dimensions along which companies perform aggregation.

What is Aggregate Planning?

Aggregate planning is a technique for creating a comprehensive manufacturing plan that guarantees continuous production at a facility. Typically, a 3- to 18-month time frame is used for aggregate production planning. Aggregate planning includes not just individual production runs or the creation of individual goods, but all production operations at a facility (or for large businesses, across numerous facilities). As a result, despite large variations in demand for individual items brought on by adjustments in client orders, supply chain dynamics, and other factors, aggregate production planning aids producers in maximizing resource usage. Aggregate planning is a feature of an advanced planning and scheduling (APS) system that firms who use digital systems in a manufacturing operations management (MOM) ecosystem can use.

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which of the following will decrease the demand for money? which of the following will decrease the demand for money? an increase in the interest rate inflation an increase in nominal gdp an increase in the number of businesses and vendors accepting debit cards

Answers

An increase in the availability will decrease the demand for money. The demand for money increases as the price level rises. In contrast, the desire for money declines as the level of prices rises.

In monetary economics, the desire to hold financial assets in the form of money—specifically, cash or bank deposits rather than investments—is referred to as the demand for money. It might relate to the demand for money as it is more broadly defined in M2 or M3, or as it is more specifically defined in M1.

The need for money explains why people want a specific sum of money. The amount of money that people want to keep depends on the value of the transactions that need to be managed. The quantity of money sought increases with the volume of transactions.

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which of the following represents the real flow of cash that a firm could pay out without impairing its productive capacity? multiple choice question. profits economic earnings accounting earnings gaap earnings

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Economic Earnings represents the real flow of cash that a firm could pay out without impairing its productive capacity.

What does Real flow mean?

Next Limit Technologies created Real Flow, a fluid and dynamics simulation software. It is used to simulate a wide range of physical phenomena, including fluid, smoke, spray, and granular materials, as well as rigid and soft body dynamics. Its powerful hybrid solver, which combines particle-based and grid-based approaches, can simulate a wide range of real-world scenarios.

What does Economic Earnings means?

Economic earnings is an accounting term that refers to a company's total profits after deducting all costs, expenses, and taxes. It is the amount of money a company has left over after all costs and expenses have been paid. It is also known as "economic profit" or "net economic income." Economic earnings are important for assessing a company's overall financial performance.

Therefore the correct option is Economic earnings.

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A. Articulate the theories of international trade and investment in your own words. Give an example of one of the theories.
B. Compare domestic versus international accounting standards in your own words AND how can the difference be eliminated?
NO Plagiarism

Answers

The traditional, country-based international theory, also known as the Heckscher-Ohlin theory, holds that nations would gain comparative advantage if they produced and exported commodities that required resources or factors that they had in abundance and were, thus, less expensive production factors.

How is international financial accounting different from domestic accounting practices?Because IFRS is based on principles, but GAAP is based on regulations, this is the main distinction between the two systems. Specific facts and interpretations serve as the primary means of displaying this separation. Essentially, IFRS regulations offer far less generalized detail than GAAP.With regards to long-lived assets, international accounting is different from US accounting. In contrast to IFRS, GAAP prohibits any devaluation of long-lived assets.The term "international business" refers to economic activities that take place across national boundaries.On the other hand, the logically sounder and consistently applied IFRS standards are more accurate in their representation of commercial transactions' economics.

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the application of analytical tools to general-purpose financial statements. the communication of financial information useful for making investment, credit, and other business decisions. general-purpose financial statements only. ratio analysis only. profitability.

Answers

True.

How do financial statements work?

An organization's financial results, financial condition, and cash flows are all summarized in its financial statements. The balance sheet, cash flow statement, and income statement are a few of them.

What Drawbacks Are There to Financial Statements?

Issuing financial statements has a few drawbacks. They may be fraudulently manipulated, giving investors to assume that the issuing firm has achieved better performance than was actually the case. This is a potential worry. A lender may offer debt to a company that cannot reasonably repay it as a result of such manipulation. Financial statements are totally historical in nature, which makes them potentially misleading when used to forecast future corporate performance.

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True. The application of analytical tools to general-purpose financial statements.

How do financial statements work?

An organization's financial results, financial condition, and cash flows are all summarized in its financial statements. The balance sheet, cash flow statement, and income statement are a few of them.

What Drawbacks Are There to Financial Statements?

Issuing financial statements has a few drawbacks. They may be fraudulently manipulated, giving investors to assume that the issuing firm has achieved better performance than was actually the case. This is a potential worry. A lender may offer debt to a company that cannot reasonably repay it as a result of such manipulation. Financial statements are totally historical in nature, which makes them potentially misleading when used to forecast future corporate performance.

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a local business that hires a sign holder to stand on the sidewalk, trying to catch the attention of passersby by promoting a special marketing event, is using .

Answers

A local business that hires a sign holder to stand on the sidewalk, trying to catch the attention of passer by promoting a special marketing event, is using guerrilla marketing.

What is Guerrilla marketing?

Guerrilla marketing is the employment of creative, unorthodox strategies to increase sales or spark interest in a product or company. These techniques frequently entail low- or no-cost usage of more casual contacts or through viral social media messaging.

What makes guerrilla marketing so effective?

Campaigns that use Guerilla marketing are distinctive, out-of-the-box, and have a history of influencing consumers. Customers who experience a successful campaign are left amazed, intrigued, and curious about the product and/or service. This marketing tactic aids in increasing brand memory.

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Social entrepreneurs, unlike business entrepreneurs, have no desire to make a profit from their business ventures. false.

Answers

False, A social enterprise dedicates a significant percentage of its income to bringing about positive change in the world, in contrast to a standard business where profit is reinvested into the business for the sake of its own expansion.

What is a social entrepreneurship?

For-profit social businesses as well as nonprofit organizations and charities can both participate in social entrepreneurship, which is the creation of a business around certain social and environmental goals.

Because their primary motivation is to change the world or their communities, social entrepreneurs vary from regular business owners. They frequently have firsthand knowledge of the causes they support, which informs their company's mission.

Social entrepreneurs are more likely to measure success in terms of things like employment generated, trees planted, or donations made to a nonprofit organization that addresses the issue they invested in, whereas typical businesses may do so by looking at market share or year-over-year revenue increase.

Hence, False, A social enterprise dedicates a significant percentage of its income to bringing about positive change in the world, in contrast to a standard business where profit is reinvested into the business for the sake of its own expansion.

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T/F. the alert roster must be tested more frequently than other components of a disaster recovery plan because it is subject to continual change due to employee turnover.

Answers

The alert roster must be tested more frequently than other components of a disaster recovery plan because it is subject to continual change due to employee turnover is true.

What does alert stand for?

Assure, Look, Employees, Reports, and Threat are all abbreviated as ALERT. It is connected to five questions that aim to increase knowledge of crucial food defense issues in the food industry, such as reporting suspicious behavior and product security.

A company's alert roster is a document that lists the people who should be notified when an issue happens. Sequential and hierarchical alert rosters are available. The sequential roster serves as an illustration of how one person can call everyone else on the roster.

Therefore, a formal document called a disaster recovery plan (DR plan) is produced by an organization and offers comprehensive guidelines on how to handle unanticipated events like natural disasters, power outages, and cyberattacks.

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Which of the following are characteristics of blockchain technology? (select all that apply)
a. Decentralized technology
b. Distributed transaction ledger
c. Secure framework
d. High profit margins

Answers

Decentralized technology, Distributed transaction ledger, Secure framework are characteristics of blockchain technology.

What does Decentralized Technology means?

Decentralized technology, also known as distributed technology, refers to a system in which components are distributed across a network rather than being stored in a centralized system. Users can control and manage their data and activities using this technology without relying on a centralized authority. It also enables more secure and reliable data exchanges and transactions because there is no single point of failure. Furthermore, by eliminating the need for a third party to facilitate transactions, decentralization helps to reduce costs and increase efficiency.

What is Blockchain Technology?

Blockchain technology is a distributed ledger system that is decentralized and records digital transactions across a peer-to-peer network. It is a shared digital ledger of transactions that is constantly growing as new blocks are added to it, with a secure record of each transaction. Each block contains the previous block's cryptographic hash, a timestamp, and transaction data. A blockchain is resistant to data modification by design and is inherently secure, efficient, and transparent.

Threfore the option A,B & C Decentralized technology, Distributed transaction ledger, Secure framework is the correct answer.

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This year Andrews achieved an ROE of 12.2%. Suppose the Board of Directors of Andrews mandates that management take measures to increase financial leverage (=Assets/Equity) next year. Assuming Sales, Profits, and Assets remain the same next year, what effect would you expect this new leverage policy will have on Andrews ROE?-Andrews ROE will decrease.-Andrews ROE will remain the same.-Andrews ROE will increase.

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Assuming Sales, Profits, and Assets stay the equal subsequent year,  this new leverage coverage can have on Andrews ROE -Andrews ROE will decrease.

The required details about Leverage is mentioned in below paragraph.

Leverage refers to using debt (borrowed funds) to enlarge returns from an funding or project.

Investors use leverage to multiply their shopping for strength withinside the market.

Companies use leverage to finance their belongings—rather than issuing inventory to elevate capital, organizations can use debt to spend money on commercial enterprise operations in an try to growth shareholder value.

There is a variety of economic leverage ratios to gauge how unstable a company's role is, with the maximum not unusualplace being debt-to-belongings and debt-to-equity.

Misuse of leverage can also additionally have extreme consequences, as there are a few that agree with it performed a component withinside the 2008 Global Financial Crisis.

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"Dean Company uses the retail inventory method to estimate its inventory for interim statement purposes: Data relating to the computation of the inventory at July 31,,20X7 , are as follows: Cost Retall Inventory, 1/1[X7 P 180,Q0Q P 250,000 Purchases 1,020,000 1,575,000 Markups, net 175,000 Sales 1,705,000 Estimated normal shoplifting losses 20,000 Markdown, net 125,000 Under the average cost retail method, Dean's estimated inventory at July 31, 20X7 is P90,000 P96,000 P102,000 P150,000"

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An essential tool for managing the finances is a cash-flow statement.

What precisely do business purchases entail?

In accounting, the word "purchase" describes obtaining property of a particular item or service without paying a specific sum of money. On the other hand, it happens when cash is exchanged for a specific good or service. The practice is frequently carried out by people or businesses that require goods or services.

What are expenditures and purchases?

Unit 16. Terms like "costs," "purchases," and "expenses" are frequently used when referring to financial statement and other financial topics. They frequently refer to the same thing, payments made by the company in exchange for goods or services.

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Which of the following technologies are still under development and thus do not require managers to invest in them? o base technologies emerging technologies o key technologies o large batch technologies O pacing technologies

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Emerging technologies are still under development and thus do not require managers to invest in them. The correct answer would be option B.

Although the word "emerging technology" is typically used to describe a new technology, it can also apply to an existing technology that is still being developed. The term is typically reserved for technologies that have, or are anticipated to have, significant social or economic effects. It is used to describe technologies that are currently under development or that are anticipated to be available within the next five to ten years.

New legal issues, particularly those involving copyrights, trademarks, patents and licensing, have been brought on by emerging digital technologies, which have also created new opportunities. For instance, the emergence of fresh concerns regarding the digital reproduction and dissemination of copyrighted works has resulted from the creation of new digital communication technologies and media.

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