Six months ago, you went long on put options, which expire in exactly 12 months from purchase. The strike price is $110. The Spot price today was $122.18 at close of after-hours trading. You paid $8.00 for each option.
A. If you choose to exercise before markets close today, what is your payoff?
B. If you choose to exercise before markets close today, what is your profit?
In: Finance
A dart of mass m is fired at and sticks into a block of mass M that is initially at rest on a rough, horizontal surface. The coefficient of kinetic friction between the block and the surface is μk. After the collision, the dart and the block slide a distance D before coming to rest. If the dart were fired horizontally, what would its speed be immediately before impact with the block? (Use any variable or symbol stated above along with the following as necessary: g.)
In: Physics
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In: Accounting
Sunny Ltd., a hand sanitizer manufacturer, has prepared its financial statements for the year ended at December 31, 2019. On February 28, 2020, the board of directors authorized to issue the financial statements to shareholders. The following events have occurred:
1. On December 1, 2019, the board of directors decided to issue $50,000,000, 9% convertible bonds for the purpose of expanding business in other countries. The conversion rate is fixed at 50 shares for bond with face value of $1,000. The convertible bonds are offered to the public on January 15, 2020. The market interest rate for a similar bond without conversion option is at 12%.
2. On October 23, 2019, Sunny signed a contract to sell 10,000 hand sanitizer to a local store at a price of $200 each. However, due to the increase in the cost of materials, the estimated cost of making one hand sanitizer has been increased to $250. Sunny has to deliver the hand sanitizer to its customer on January 30, 2020.
3. Under the terms of the sales contract, Sunny undertakes to recall its new formulated sanitizer, for its manufacturing defects within six months from the date of sale. The accountants estimated that 5% of the sanitizer will be returned for refund. In January 2020, Sunny discovered a serious problem in the manufacturing process of the new formulated sanitizer. Because of this, Sunny expected that 20% of the sanitizer sold in 2019 will be returned for refund.
4. On December 15, 2019, a group of customers reported that the hand sanitizer that they bought in 2019 caused them have serious skin infection problems. They filed a lawsuit against Sunny on December 20, 2019. The company’s attorney said that it was probable that Sunny would be liable for the case. However, the amount of damage could not be estimated.
5. On February 12, 2020, the above lawsuit case was settled for the amount of $2,500,000.
6. Sunny has retail stores in China doing poorly. On February 15, 2020, Sunny estimated that those stores might report a loss of $1,500,000 in 2020.
7. In May 2019, Sunny had legal disputes with Coco Limited. Unable to reach out-of-court settlement with Coco, Sunny sued Coco for compensation for damages in August 2018. In November 2019, Sunny heard good news about the lawsuit in which the company sued Coco. Sunny’s lawyer is confident that the company will win the case and will receive about $120,000 in compensation for damages from Coco in early 2020. Sunny recognized the gain and receivable from litigation of $120,000 in year 2019.
8. On March 1, 2020, a customer owing $600,000 to Sunny filed for bankruptcy. The financial statements include an allowance for doubtful debts pertaining to this customer only of $30,000.
Required: For each of the above event, state the correct accounting treatments in accordance with Hong Kong Accounting Standards for the year ended at December 31, 2019. If it is an event after the reporting period, identify whether it is an adjusting or non-adjusting event. Give reasons for your answer.
In: Accounting
Required information
Exercise 11-6 Stock dividends and per share book values LO P2
[The following information applies to the questions
displayed below.]
The stockholders’ equity of TVX Company at the beginning of the day
on February 5 follows:
| Common stock—$20 par
value, 150,000 shares authorized, 56,000 shares issued and outstanding |
$ | 1,120,000 | |
| Paid-in capital in excess of par value, common stock | 525,000 | ||
| Retained earnings | 675,000 | ||
| Total stockholders’ equity | $ | 2,320,000 | |
On February 5, the directors declare a 12% stock dividend
distributable on February 28 to the February 15 stockholders of
record. The stock’s market value is $39 per share on February 5
before the stock dividend. The stock’s market value is $35 per
share on February 28.
Exercise 11-6 Part 2
2. One stockholder owned 900 shares on February 5 before the dividend. Compute the book value per share and total book value of this stockholder’s shares immediately before and after the stock dividend of February 5. (Round your "Book value per share" answers to 3 decimal places.)
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In: Accounting
The identity between national savings and investment holds only in a(n): open economy. closed economy. shrinking economy. growing economy.
In: Economics
In: Math
In: Economics
Define and explain Foreign Direct Investment. What is the difference between a closed and open Economy? How would they obtain the financing for investment?
In: Economics
A 20.0 cm long organ pipe is filled with air and is open at one end and closed at the other. The velocity of sound in air at 0
In: Physics