Apple Incorporated (AI) board of directors has indicated that they will repurchase AI’s stock effective July 1st, 2020. You currently hold 100 AI’s stock. Explain in detail, the concept of “information content” to be derived from the board of director’s pronouncement. Discuss the likely impact of this pronouncement to AI’s stock price? In respect of this announcement, discuss the concept of the “signaling theory” and how will managers of AI be placed in an advantageous position ahead of the normal investor? (Word count limit (250-500)

Which is cheaper: eating out or dining in? The mean cost of a flank steak, broccoli, and rice bought at the grocery store is $13.04 (Money.msn website, November 7, 2012). A sample of 100 neighborhood restaurants showed a mean price of $12.75 and a standard deviation of $2 for a comparable restaurant meal.

Compute the value of the test statistic. (Round to two decimal places) Answer

What is the p-value? (Round to three decimal places). Answer

At α=0.05, what is your conclusion?

Presented below is information related to Concord Company. Date Ending Inventory (End-of-Year Prices) Price Index December 31, 2017 $ 83,200 100 December 31, 2018 145,934 131 December 31, 2019 142,950 150 December 31, 2020 161,696 163 December 31, 2021 193,200 175 December 31, 2022 227,698 181 Compute the ending inventory for Concord Company for 2017 through 2022 using the dollar-value LIFO method.

Malmentier SA stock is currently priced at $55, and it does not pay dividends. The instantaneous risk-free rate of return is 5%. The instantaneous standard deviation of Malmentier SA stock is 40%. You want to purchase a put option on this stock with an exercise price of $60 and an expiration date 30 days from now. According to the Black-Scholes OPM, you should hold __________ shares of stock per 100 put options to hedge your risk.

• 36

• 40

• 75

• 80

19) Malmentier SA stock is currently priced at $90, and it does not pay dividends. The instantaneous risk-free rate of return is 6%. The instantaneous standard deviation of Malmentier SA stock is 30%. You want to purchase a put option on this stock with an exercise price of $95 and an expiration date 30 days from now. According to the Black-Scholes OPM, you should hold ____ shares of stock per 100 put options to hedge your risk.

31
35
70
75

IBM stock currently sells for 100 dollars per share. The implied volatility equals 20.0. The risk-free rate of interest is 4.0 percent continuously compounded. If you owned a 200 shares of IBM stock, how many call options with a strike price of 95 and a maturity of 6 months would you have to buy (sell) to create a delta-neutral hedge? Assume each option controls one share of IBM stock. Answer should be rounded to 2 decimal places.

IBM stock currently sells for 100 dollars per share. The implied volatility equals 20.0. The risk-free rate of interest is 4.0 percent continuously compounded. If you owned a 200 shares of IBM stock, how many call options with a strike price of 95 and a maturity of 6 months would you have to buy (sell) to create a delta-neutral hedge? Assume each option controls one share of IBM stock. Answer should be rounded to 2 decimal places.

Explain what break-even point is and what the formulae is in general terms. Please answer in 350 words and only in word format. Please dont copy paste the explanation from wikipedia or investopedia.

And also Please provide explanation of this calculation given below in details.

Unit Price =$100.00

Unit Variable Cost =$30.00

Fixed Cost=$21,000,000

Unit CM=$100 -$30=$70

Profit=70*Q-21,000,000

At Breakeven, Q =21,000,000/70 =300,000

Thanks

2: Relative sales value method.

Armstrong Company purchased a plot of ground for $800,000 and spent $2,100,000 in developing it for building lots. The lots were classified into Highland, Midland, and Lowland grades, to sell at $100,000, $75,000, and $50,000 each, respectively.

Instructions: Complete the table below to allocate the cost of the lots using a relative sales value method.

Exercise 9-27

Presented below is information related to Sandhill Corporation. Price Index LIFO Cost Retail Inventory on December 31, 2017, when dollar-value LIFO is adopted 100 $36,600 $69,100 Inventory, December 31, 2018 110 ? 95,260 Compute the ending inventory under the dollar-value LIFO method at December 31, 2018. The cost-to-retail ratio for 2018 was 60%. Ending inventory under the dollar-value LIFO method at December 31, 2018