suppose the standard deviation of a stocks return is 25% per year and the riskless return is 10% APR.Answer the below questions using the Black -Scholas OPM. A. What is a 6 month call option on this stock worth if the strick price is $90 and the stock price is(Po)is currently at$104? B.what is the exercise value and the time premiumof this optrion? C.Everything else being equal,what is the value of a 6 month put option on the common stock?Use call- put parity.

The following events occurred over the course of a year at Bagby Corp., which uses a job order costing system:

1. Direct materials purchases totaled $460,000.

2. $230,000 of indirect materials were used in production. Bagby uses a separate Supplies Inventory account for indirect materials.

3. $415,000 of direct materials were used in production.

4. The direct labor payroll was $940,000 (credit Wages Payable).

5. Other manufacturing overhead costs incurred during the year totaled $540,000.

6. Bagby applies overhead based on a predetermined overhead rate of $15 per machine hour. The company used 50,000 machine hours during the year.

7. During the year, Bagby transferred goods costing $2,100,000 into the Finished Goods Inventory account.

8. Bagby sold products with a manufacturing cost of $2,050,000 to customers during the year.

Required

a. Prepare journal entries to record these events.

b. Prepare T-accounts for the following accounts: Direct Materials Inventory, Work in Process Inventory, Manufacturing Overhead Control, and Finished Goods Inventory. Record the transactions from part (a) in the T-accounts and calculate ending account balances. Assume the following beginning account balances: Account Balance Direct Materials Inventory $20,000 Work in Process Inventory $12,000 Finished Goods Inventory $35,000

c. Was overhead under- or overapplied for the year? By how much?

There is a project with the following cash flows :

What is the payback period?

Multiple Choice

• 2.73 years

• 4.00 years

• 3.81 years

• 3.63 years

• 3.37 years

An asset was purchased three years ago for $120,000. It falls into the five-year category for MACRS depreciation. The firm is in a 35 percent tax bracket. Use Table 12–12.

a. Compute the tax loss on the sale and the related tax benefit if the asset is sold now for $12,560. (Input all amounts as positive values. Do not round intermediate calculations and round your answers to whole dollars.)
  

b. Compute the gain and related tax on the sale if the asset is sold now for $51,060. (Input all amounts as positive values. Do not round intermediate calculations and round your answers to whole dollars.)
  

wanson & Hiller, Inc., purchased a new machine on September 1 of the current year at a cost of $108,000. The machine’s estimated useful life at the time of the purchase was five years, and its residual value was $8,000. The company reports on a calendar year basis. Required:

a-1. Prepare a complete depreciation schedule, beginning with the current year, using the straight-line method. (Assume that the half-year convention is used)

a-2. Prepare a complete depreciation schedule, beginning with the current year, using the 200 percent declining-balance method. (Assume that the half-year convention is used).

a-3. Prepare a complete depreciation schedule, beginning with the current year, using the 150 percent declining-balance, switching to straight-line when that maximizes the expense. (Assume that the half-year convention is used).

b. Which of the three methods computed in part a is most common for financial reporting purposes?

c. Assume that Swanson & Hiller sells the machine on December 31 of the fourth year for $29,000 cash. Compute the resulting gain or loss from this sale under each of the depreciation methods used in part a.

The patient is a 17 year old female who arrives to the emergency department in active labor with a questionable past of obstetrical history. she indicates that she has had no prenatal care, does not remember her last menstruation period and is evasive if this is her first pregnancy. Blood work indicates she is Rh negative.

A) What are some concerns you as her nurse should be prepared for?

B) What teaching does this patient need?

C) What are the expected outcomes for this patients?

Stark Industries wants to sell 15-year bonds to the school of the gifted and talented at Xavier’s School. The par value of bonds will be at $1,000 and they pay interest annually. Each bond will have 10 warrants that will give Dr. Charles Xavier the right to purchase one share of Stark Industries stock per warrant. Tony Stark’s bankers estimate that each warrant will have a value of $25.00. A similar straight-debt issue would require an 8% coupon rate. At what amount would the coupon rate need to be on the bonds with the warrants so that this bundled combo would be able to sell for $1,000?

4.66%

5.08%

5.42%

5.84%

6.17%

Net revenues at an older manufacturing plant will be $2 million this year. The net revenue will decrease by 15% per year for 5 years, when the assembly plant will be closed (at the end of year 6). If the firm's interest rate is 10%, calculate the PW of the revenue stream. Use excel functions and a table.

The real risk-free rate is 2.50%. Inflation is expected to be 1.75% this year and 3.75% during the next 2 years. Assume that the maturity risk premium is zero.

What is the yield on 2-year Treasury securities? Do not round intermediate calculations. Round your answer to two decimal places.

__________%

What is the yield on 3-year Treasury securities? Do not round intermediate calculations. Round your answer to two decimal places.

__________%

The Landers Corporation needs to raise $1.90 million of debt on a 10-year issue. If it places the bonds privately, the interest rate will be 10 percent. Twenty five thousand dollars in out-of-pocket costs will be incurred. For a public issue, the interest rate will be 12 percent, and the underwriting spread will be 4 percent. There will be $110,000 in out-of-pocket costs. Assume interest on the debt is paid semiannually, and the debt will be outstanding for the full 10-year period, at which time it will be repaid. Calculate your final answer using the formula and financial calculator methods.

a. For each plan, compare the net amount of funds initially available—inflow—to the present value of future payments of interest and principal to determine net present value. Assume the stated discount rate is 16 percent annually. Use 8.00 percent semiannually throughout the analysis. (Disregard taxes.) (Assume the $1.90 million needed includes the underwriting costs. Input your present value of future payments answers as negative values. Do not round intermediate calculations and round your answers to 2 decimal places.)