the balance in retained earnings at the end of the year is determined by retained earnings balance at the ''beginning of the year:

a. plus revenues, minus liabilities

b. plus net income, minus dividends

c. plus assets, minus liabilities

d. plus accounts, minus deferrals

The book value of Victor's equipment was $140,000 at the beginning of the year and $180,000 at year end. Depreciation expense for the year was $10,000. If no equipment was sold during the year, how much equipment did Victor purchase?

Group of answer choices

A. $40,000.

B. $50,000.

C. $60,000.

The comparative balance sheets of Coronado Inc. at the beginning and the end of the year 2020 are as follows.

Net income of $47,200 was reported, and dividends of $27,680 were paid in 2020. New equipment was purchased and none was sold.

Prepare a statement of cash flows for the year 2020. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

The current price of a stock is $80, and at the end of one year its price will be either $88 or $72. The annual risk-free rate is 3.0%, based on daily compounding. Based on the binominal model, what is the present value for a 1-year call option on this stock with an exercise price of $86?

If you make a deposit of the amount below at the end of each year for the number of years at the interest rate specified, how much money will you have in the account at the end of that time?(Do not round intermediate calculations, round answer to two decimal places, i.e. 32.16)

Payment:9000

Years:23 Interest

Rate:9.2%

The Harris Company is the lessee on a four-year lease with the following payments at the end of each year: Year 1: $ 17,000 Year 2: $ 22,000 Year 3: $ 27,000 Year 4: $ 32,000 An appropriate discount rate is 7 percentage, yielding a present value of $81,556. 1. If the lease is an operating lease, what will be the initial value of the right-of-use asset? 2. If the lease is an operating lease, what will be the initial value of the lease liability? 3. If the lease is an operating lease, what will be the lease expense shown on the income statement at the end of year 1?

1. A stock price is currently $50. It is known that at the end of one year it will be either $40 and $60. The exercise price of a one-year European call option is $55. The risk-free interest rate is 5% per annum.

1. Construct a binomial tree to show the payoff of the call option at the expiration date. (5%)
2. Based on the binomial tree model, what is the value of the call option? (15%)
3. Address the relation between the binomial tree model and the Black-Scholes model. (5%)

A stock price is currently $50. It is known that at the end of one year it will be either $40 and $60. The exercise price of a one-year European call option is $55. The risk-free interest rate is 5% per annum.

a. Construct a binomial tree to show the payoff of the call option at the expiration date.

b. Based on the binomial tree model, what is the value of the call option?

c. Address the relation between the binomial tree model and the Black-Scholes model.