On December 1, 20X8, Winston Corporation acquired 10 deep discount bonds from Linked Corporation at a cost of $400 per bond. Winston classifies them as available-for-sale securities. On this same date, it decides to hedge against a possible decline in the value of the securities by purchasing, at a cost of $250, an at-the-money put option to sell the 10 bonds at $400 per bond. The option expires on February 20, 20X9. Selected information concerning the fair values of the investment and the options follow: December 1, December 31, February 20, 20X8 20X8 20X9Linked Corporation Per Bond: $400 ? ? Put Option (100 shares) Market Value $250 $400 $400 Intrinsic Value 0 ? 400 Time
Value $250 $100 ? Assume that Winston exercises the put option and sells Linked bonds on February 20, 20X9.Based on the preceding information, what is the market price of Linked Corporation bonds on February 20, 20X9?
A. $360
B. $400
C. $350
D. $370
Answer: A
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Barlo Lunch Snacks places a coupon in each box of its cracker product. Customers may send in five coupons and $3, and the company will send them a recipe book. Sufficient books were purchased at a cost of $5 each. A total of 500,000 boxes of product were sold in 2016. It was estimated that 4% of the coupons would be redeemed. During 2016, 9,000 coupons were redeemed. What is Barlo's premium
expense for 2016? A) $4,400 B) $8,000 C) $20,000 D) $40,000
Why is it important for managers to define the problem and establish research objectives?
What will be an ideal response?
Answer the following statements true (T) or false (F)
Extraordinary items should be disclosed net of tax.
During which stage of the organizational design process would one ensure that the new structure is functioning well?
a. Setting the scene b. Understanding the business climate c. Evaluating the design d. Transforming the design