Discuss the different financial ratio categories and what they tell us. This could include discussing the relationship between each of the categories. End with discussing why the statements and ratios are important to managers, creditors, and investors. As stated in the
textbook, certain ratios and categories are more relevant to the different stakeholders. For example, managers, creditors, and investors would monitor the liquidity ratios. Why?

Answers

Answer 1

These ratios and financial statements are important to stakeholders as they help monitor financial health, evaluate risk, identify areas for improvement, and make informed decisions.

Financial ratios provide valuable insights into a company's financial performance. They can be categorized into liquidity, profitability, solvency, and efficiency ratios.

Liquidity ratios assess a company's ability to meet short-term obligations, while profitability ratios measure its ability to generate profits. Solvency ratios evaluate long-term financial stability, and efficiency ratios assess asset utilization.

Managers, creditors, and investors each have different interests in financial ratios. Managers use them to evaluate performance and make informed decisions.

Creditors focus on liquidity ratios to assess repayment ability, and investors analyze profitability ratios for potential returns. Different ratios cater to different stakeholder needs, ensuring a comprehensive evaluation of a company's financial position.

To know more about stakeholders click here:

https://brainly.com/question/30241824#

#SPJ11


Related Questions

Unlike a printed product, online service information
can be instantaneously ___ by the provider.

Answers

Answer: bolt

Explanation:

an s corporation may have only two classes of stockT/F

Answers

The given statement "an s corporation may have only two classes of stock" is False because An S corporation can have only one class of stock.

One of the requirements for S corporation status is that the company must have a single class of stock. This means that all shareholders must have the same rights and privileges regarding voting power and distributions.

Having multiple classes of stock with different rights and preferences would violate the eligibility criteria for S corporation status. The purpose of this restriction is to maintain the simplicity and pass-through tax treatment of S corporations.

It's worth noting that S corporations can have different voting rights attached to the shares, such as voting and non-voting shares. However, all shares within a single class must have the same economic rights, meaning they are entitled to receive the same proportionate share of the company's profits and losses.

To know more about corporation refer to-

https://brainly.com/question/30029715

#SPJ11

Student Emergency Financial Services, Inc., which makes small loans to college students, offers to lend $550. The borrower is required to pay $42 at the end of each week for 16 weeks. Find the interest rate per week. What is the nominal interest rate per year? What is the effective interest rate per year?

Answers

the effective interest rate per year is 4.07%. Hence, the interest rate per week is $122, the nominal interest rate per year is 4%, and the effective interest rate per year is 4.07%.

To calculate the interest rate per week, we can use the below formula:

Interest = (Payment per week × Weekly installments) - Lend

Interest = ($42 × 16) - $550

Interest = $672 - $550

Interest = $122

Therefore, the interest rate per week is $122.To find the nominal interest rate per year, we will use the following formula:

Nominal interest rate = (Interest / Principal) × (Number of weeks in a year / Number of weeks for the loan)

Nominal interest rate = ($122 / $550) × (52 / 16)

Nominal interest rate = 0.04 or 4%

Therefore, the nominal interest rate per year is 4%.Now, we will calculate the effective interest rate per year. We will use the following formula to calculate it:

Effective interest rate = (1 + Nominal interest rate / Number of times interest is compounded per year) ^ Number of times interest is compounded per year - 1

Effective interest rate = (1 + 0.04 / 52) ^ 52 - 1

Effective interest rate = 0.0407 or 4.07%

Therefore, the effective interest rate per year is 4.07%. Hence, the interest rate per week is $122, the nominal interest rate per year is 4%, and the effective interest rate per year is 4.07%.

To know more about interest rate visit :

https://brainly.com/question/28236069

#SPJ11

quizlet Putting the patient at the center of the decisions, resources, and desired outcomes and providing the necessary information that empowers patients to become involved in making decisions regarding their own treatment.

Answers

Putting the patient at the center of the decisions, resources, and desired outcomes is a key principle of patient-centered care. This approach focuses on empowering patients and involving them in the decision-making process regarding their treatment.

It recognizes the importance of providing patients with the necessary information and support to actively participate in their own healthcare decisions. By doing so, patients are better able to understand their condition, make informed choices, and collaborate with healthcare providers to develop personalized treatment plans.

Patient-centered care promotes a partnership between patients and healthcare professionals, with the goal of improving patient satisfaction, engagement, and overall healthcare outcomes. It emphasizes the importance of tailoring healthcare services to meet individual patient needs and preferences, ultimately leading to more effective and patient-focused care.

Learn more about patient-centered care here

https://brainly.com/question/17647800

#SPJ11

Putting the patient at the center of the decisions, resources, and desired outcomes and providing the necessary information that empowers patients to become involved in making decisions regarding their own treatment.

How does “principal” relate to an auto/college loan?

Answers

The relation of “principal” to an auto/college loan is given below:

What is principal?

The term "principal" refers to the amount of money borrowed in a loan, not including interest. In an auto loan or college loan, the principal is the initial amount of money that the borrower receives from the lender.

For example, if you take out a $20,000 auto loan to purchase a car, the principal of the loan would be $20,000. This is the amount of money that you receive from the lender to purchase the car.

Interest is a fee that the lender charges the borrower for the use of the money. The interest is typically expressed as a percentage of the principal and is paid over the term of the loan.

For example, if the interest rate on the $20,000 auto loan is 5% per year and the loan term is 5 years, the total interest paid over the course of the loan would be $2,500 (5% of $20,000 per year for 5 years). This means that the total cost of the loan, including both the principal and the interest, would be $22,500 ($20,000 principal + $2,500 interest).

Hence, the principal of a loan is the initial amount of money borrowed, while interest is a fee charged by the lender for the use of the money.

To learn more about principal from the given link:

https://brainly.com/question/25720319

#SPJ1

There are 8 kinds of sewing machine. Are all of them are used for constructing a garment? Why?

Answers

no, they can be used for mechanical uses

A market basket: ______________
a) is related to how firms make purchasing decisions.
b) includes specific goods and services in fixed quantities that roughly correspond to a typical consumer's spending.
c) includes housing, food, and clothing, but does not include transportation.
d) is what an economist creates in order to understand the purchasing trends of households and firms.

Answers

Answer:

B

Explanation:

I think the answer would be B because it is a hypothetical set of goods and services of the consumers

Kristoffer needs to create cell names that match the column headings he has already created. Select the correct navigational path to set those names using the Create from Selection command. Click on the tab on the ribbon and look in the Defined Names gallery.

Answers

Answer:

formula

create from selection

top row

Explanation:

just took the question on edge

The correct navigational path to create cell names that match the column heading using the Create from Selection command is: Click on the Formula tab on the ribbon and look in the Defined Names gallery. Select the range of cells, including the row that includes the name you wish to use. Select Create from Selection. Select Top row and click OK.

What is a cell?

Cells are the boxes that appear in an Excel worksheet's grid. On a worksheet, each cell is identified by its reference, the column letter and row number that intersect at the cell's location.

Instead of creating cell names one by one, "Create from Selection" tool can be used to create cell names from a selection. The tool is in the "Defined Names" group of the Formulas menu.

Therefore, the correct path for using the Create from Selection command is first to click on  Formula tab and look in the Defined Names gallery. Then select the range of cells, including the row that includes the name  wish to use. Select Create from Selection. Select Top row and click OK.

To learn more about cell, click here:

https://brainly.com/question/1380185

#SPJ6

Which of the following actions best demonstrates to your boss that you are a motivated employee?
A) Finishing a task after your boss reminds you about it.
B) Hosting a pizza party for some work friends.
C) Arriving an hour early for a client meeting.
D) Helping a co-worker when your own work is finished.

Answers

Arriving an hour early for client meeting of following actions best demonstrates to your boss that you are at employee motivation.

What is employee motivation?

Employee motivation is the intrinsic need to put up the necessary effort and take the proper action for tasks related to their jobs. A wide definition is that it relates to "psychological forces that determine an individual's level of effort and persistence, as well as the course of their conduct inside an organization." Motivation at work has been characterized as the "total of the mechanisms that determine the arousal, direction, and maintenance of behaviors related to work settings." Since motivated employees are often more productive, employee motivation is essential to the success of a firm. Motivation is the desire a person has to carry out a task or activity in order to achieve a goal.

To learn more about employee motivation, visit:

https://brainly.com/question/12440329

#SPJ1

New Orleans’s Mt. Sinai Hospital is a large, private, 600-bed facility complete with laboratories, operating rooms, and X-ray equipment. In seeking to increase revenues, Mt. Sinai’s administration has decided to make a 90-bed addition on a portion of adjacent land currently used for staff parking. The administrators fell that the labs, operating rooms, and X-ray department are not being fully utilized at present and do not need to be expanded to handle additional patients. The addition of 90 beds, however, involves deciding how many beds should be allocated to the medical staff (for medical patients) and how many to the surgical staff (for surgical patients).
The hospital’s accounting and medical records departments have provided the following pertinent information. The average hospital stay for a medical patient is 8 days, and the average medical patient generates $2,280 in revenues. The average surgical patient is in the hospital 5 days and generates $1,515 in revenues. The laboratory is capable of handling 15,000 test per year more than it was handling. The average medical patient requires 3.1 lab tests, the average surgical patient requires 2.6 lab tests. Furthermore, the average medical patient uses 1 X-ray, the average surgical patient uses 2 X-rays. If the hospital were expanded by 90 beds, the X-ray department could handle up to 7000 X-rays without significant additional cost. Finally, the administration estimates that up to 2,800 additional operations could be performed in existing operating- room facilities. Medical patients, of course, require no surgery, whereas each surgical patient generally has one surgery performed. Assume the hospital is open 365 days a year.
Formulate the LP problem and state the objective function and the constraints? (5 points)
Plot the constraints on a graph and shade the feasible solution area. Solve the corner points and what is the optimal solution point. Show all your work. (10 points)
Once you have figured out the optimal solution determine how many medical beds and how many surgical beds should be added to maximize revenues. (5 points)
Calculate any slack or surplus.

Answers

Linear Programming (LP) is a mathematical approach for optimizing a linear objective function that is subject to linear equality and linear inequality constraints.

Linear Programming is utilized in many fields of science and technology for decision-making in business planning and optimization.

Here's how the LP problem formulation, constraints and objective function can be stated in this problem: Decision Variables: Medical beds: x1, Surgical beds: x2Objective Function:

To maximize the total revenue Z = 2,280x1 + 1,515x2Constraints:1. Number of beds cannot be negative, x1, x2 ≥ 0.2. Number of beds cannot exceed the new bed addition: x1 + x2 ≤ 90.3.

To know more about Programming visit:

https://brainly.com/question/14368396

#SPJ11

What is market economy?

Answers

Answer: an economic system in which production and prices are determined by unrestricted competition between privately owned businesses.

Answer:

an economic system in which production and prices are determined by unrestricted competition between privately owned businesses.

Explanation:

The tendency toward international integration and interdependency of goods, technology, information, labor, and capital is called economic ______________.

Answers

Economic globalizations refers to the trend toward global integration and interdependence of resources like labor, capital, information, and technology.

What is Economic globalization?
Economic globalization
is the term used to describe the rising interdependence of world economies as a result of the expanding size of cross-border trade in goods and services, the movement of capital internationally, and the wide-spread and quick adoption of technology. Free trade agreements, like the Trans-Pacific Partnership and the North American Free Trade Agreement, are instances of economic globalization.

Economic globalization boosts business productivity and significantly expands the size of the economies of all nations. Improvements in the economy raise peoples' standards of living and educational attainment. Additionally, it creates the structural foundation for the growth of education.

To know about Economic globalizations in given link
https://brainly.com/question/2824360
#SPJ9

Which margin is at the very bottom of the page when printing worksheets?

top margin
bottom margin
header margin
footer margin

Answers

Answer:

Footer Margin

Explanation:

Just took this :)

Answer:

Footer Margin

Explanation:

Where in government (federal, state/territory/tribal, or local)

would be a good place to examine work efficiency with an

exponential distribution? Why?

Answers

Examining work efficiency with an exponential distribution would be best suited at the local government level.

Local government would be a good place to examine work efficiency with an exponential distribution. The exponential distribution is commonly used to model the time between events in a Poisson process, where events occur randomly and independently over time. In the context of work efficiency, this distribution can be applied to measure the time it takes for tasks or processes to be completed.

At the local government level, there are often numerous administrative processes, service delivery tasks, and operational activities that can benefit from assessing work efficiency. By analyzing the time it takes to complete these tasks using an exponential distribution, local government entities can identify bottlenecks, streamline processes, allocate resources effectively, and improve overall work efficiency.

Learn more about exponential distribution here: brainly.com/question/30669822

#SPJ11

Which of the following statements about investing is TRUE?
1. Investing is a guaranteed way to make money.
2. Investing is best for short-term financial goals.
3. Investing is riskier than putting money in a savings accounts.
4. On average, putting money in a savings account earns a higher return than investing money in the stock market.

Answers

Answer:

3. Investing is riskier than putting money in a savings accounts.

Explanation:

Investing involves putting money in profits generating ventures. It is risky because the money invested may be lost should the venture make losses instead of profits. Investments activities include buying of shares and other marketable securities or starting and operating a business. Should the business or investment do well, the returns or profits can be attractive.

Saving is putting money aside for future consumption. Saving may be done through savings accounts that as safe and secure. Money saved is risk-free. The possibility of losing it is very minimal. Because money saved is kept safe, it does not generate much income for the owner.

An inverted u-shaped relationship between the type of diversification and overall firm performance indicates that:.

Answers

The type of diversification and overall company performance have an inverted U-shaped relationship, indicating that: a. levels of vertical integration and overall firm performance have an inverse association.

If you are interviewed by more than one person, you should send a thank-you note to _____.


each person in the interview

each person you see in the building

the first person you are introduced to

the person who is obviously leading the interview

Answers

Answer:

option A is correct.

i.e.

each person in the interview.

Explanation:

Because thank-you letter provides a simple but effective way to express gratitude to all the individuals you met with.

You can buy life insurance for anyone. True or false

Answers

Answer:

False

Explanation:

Answer: False

Explanation:

1) Robolane Incorporated manufactures and distributes small robotic toys. Because most of its orders are via telephone or fax, numerous orders have to be reworked. The average cost of the reworked orders is $12.45: $5 for labor, $5.15 for more materials, and $2.30 for overhead. This ratio of costs holds for the average original order. On a recent day, the shop reworked 80 orders out of 800. The original cost of the 80 orders totaled $2,000. The average cost of all orders is $26.245, including rework, with an average selling price of $35. Required: Prepare the necessary journal entry to record the rework for the day if the shop charges such activities to Robo Department Overhead Control. Prepare journal entries to record all relevant rework charges as well as to transfer the reworked items finished goods to Finished Goods Inventory.

Answers

Answer:

Following are the Journal entries to the given question:

Explanation:

Accounts                                                              Dr                                        Cr

Robo Department Overhead Control              996

Materials Control \((80 \times 5.15) \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 412\)

Wages Payable  \((80\times 5)\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 400\)

Shop overhead control\((80\times 2.30) \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 184\)

Finished Goods                                                  \(2000\)

Work in process control                                                                             \(2000\)

The Pirates of Penzance Company delivers goods to various areas around the world. The company has a great reputation for being prompt on its deliveries. Blackbeard is the owner of the company. Davy Jones works for Blackbeard as an underpaid sailor. Davy knew that Blackbeard loved to read while they were transporting their deliveries and that his favorite book was The Adventures of Huckleberry Finn. Davy gave Blackbeard a valuable first edition of Twain's work hoping that Blackbeard would give him a raise in pay. A day later, Blackbeard promised to give Davy a pay raise of 18% because he was very pleased with the book. The following week when Davy received his check, he noticed that the raise was missing and he asked Blackbeard for the money. Blackbeard refused to give him his raise and Davy filed suit. Decide the outcome.

Answers

The outcome here is that the court would make blackbeard to give the pay raise that he promised to Davy.

The breach of promise.

Davy may decide to sue because there has been a breach here. He may decide to sue under the proprietary estoppel.

He already met with what was required of him by providing the book to Blackbeard. It was Blackbeard that was unable tyo meet up with his own part.

Read more on contract here:

https://brainly.com/question/5746834

How can integrity suffer when outsourcing operations to a cloudprovider?
a. Cloud authentication is weak
b. Lack of control over building images usedfor VMs
c. Distributed computing allows moreattacks
d. SLAs are hard to enforce

Answers

Integrity can suffer when outsourcing operations to a cloud provider for the following reasons: 1. Lack of control over building images used for VMs 2. Distributed computing allows more attacks 3. SLAs are hard to enforce

There are several risks involved in outsourcing operations to a cloud provider. One of the risks is that cloud authentication is weak, making it easier for malicious actors to gain unauthorized access to the system. Another risk is that the lack of control over building images used for virtual machines (VMs) can lead to vulnerabilities in the system. Additionally, distributed computing allows for more attacks on the system, since there are more entry points for attackers to exploit. Finally, service level agreements (SLAs) with cloud providers can be difficult to enforce, which can lead to a lack of accountability for the provider in the event of a breach or other security incident. Therefore, integrity can suffer when outsourcing operations to a cloud provider.


To learn more about operations
https://brainly.com/question/30415374
#SPJ11

A firm finds that as it adds workers, each worker is adding less and less output to the production process. What must be true about average cost?.

Answers

A company discovers that as it grows its staff, each employee contributes a decreasing amount of output to the manufacturing process. The fact that the average cost is increasing must be true.

The average cost is the cost per unit produced during a production run. It is a projection of the typical expenditures made in the manufacture of a good.

This price may vary depending on how many units are produced. In general, the average cost drops as the number of units produced increases when the manufacturer uses increasing efficiency.

As the firm approaches the theoretical capacity of its production facility, each additional unit is more expensive to produce, yet the average cost starts to increase.

To learn more about the average cost

https://brainly.com/question/14415150

#SPJ4

A financial lease: A) is generally called a capital lease by accountants. B) requires the lessor to maintain the asset. C) is a partially amortized lease. D) is often called a single net lease. E) can generally be cancelled without penalty..

Answers

Answer:

Option A seems to be the correct approach.

Explanation:

A financial lease seems to be a contractual contract in which: the lessee requires a property. Consider buying the commodity from the lessor. Mostly during the rental agreement, the lessee seems to be using that income stream.The obligation to pay a sequence of installments or leases and the use of the commodity. Although a finance lease becomes capitalized, the financial statement raises when both capital as well as the responsibilities.

The other alternatives in question aren't relevant to something like a particular circumstance. Then the above will have to be a viable substitute.

Answer:

A) is generally called a capital lease by accountants, is the correct answer.

Explanation:

It is an alternate way of financing in which the lessor buys an asset on behalf of its customer and the lessee signs a contract to repay the payments in installments.

In this type of lease the finance company has the ownership of the asset during the tenure but all the reward and risk related to the asset are transferred to the lessee. The lessee get the ownership of the asset at the end of the lease term.

which of the following statements is most accurate? question 5 options: high income countries spend much less on subsidies to their own farmers as they do on aid to poor countries. high income countries spend about the same amount on subsidies to their own farmers as they do on aid to poor countries. high income countries spend slightly more on subsidies to their own farmers as they do on aid to poor countries. high income countries spend slightly less on subsidies to their own farmers as they do on aid to poor countries. high income countries spend much more on subsidies to their own farmers than on aid to poor countries.

Answers

The most accurate statement is "high income countries spend much more on subsidies to their own farmers than on aid to poor countries". The correct option is A.

Subsidies refer to financial assistance or benefits provided by the government to individuals or organizations, usually in the form of cash, tax breaks, or other incentives. Subsidies are often given to promote certain economic activities, such as agriculture, renewable energy, or small businesses, or to assist groups that are deemed to be in need of help, such as low-income families or disadvantaged regions.

That's the reason, high income countries spend much more on subsidies to their own farmers than on aid to poor countries that many high income countries provide substantial subsidies to their domestic agricultural producers in order to promote food security and maintain stable agricultural industries.

To know more about subsidies here,

https://brainly.com/question/30557856

#SPJ4

12. As the second trial began, what happened to Ruby Bates?

Answers

She was missing and they could not find her.

What type of business is formed with the primary purpose of serving its user- members? O A. Partnership O B. Corporation O C. Sole proprietorship O D. Cooperative​

Answers

Answer:

A social enterprise is a business with social objectives that serve its primary purpose.

Explanation:

Answer:

cooperative

Explanation:

just took it

On 31 January 2017, you bought 200 shares of a company for $422.84 a share and on 31 January 2021 you sold them for $862.14 a share. In January 2021, you also received a cash dividend of $11.64 per share. Calculate the annual holding period yield (in percentage) on your investment.

Answers

The annual holding period yield (in percentage) on the investment of 200 shares purchased

at $422.84 a share and sold at $862.14 a share and a cash dividend of $11.24 per share is 14.27%.

Number of shares = 200

Cost per share = $422.84

Selling price per share = $862.14

Dividend per share = $11.24

To calculate the annual holding period yield of the investment, we need to determine

the holding period, the dividend, and the return on investment.

Holding period = (2021 - 2017) = 4 years

Dividend income = $11.24 x 200 = $2,248

Total revenue from selling shares = Selling price per share x Number of shares= $862.14 x 200 = $172,428

Total Cost of 200 shares = Cost per share x Number of shares= $422.84 x 200 = $84,568

Total Return on Investment = Dividend income + Total Revenue from Selling Shares - Total Cost of shares= $2,248 + $172,428 - $84,568= $90,108

Annual Holding Period Yield = ((Total Return on Investment / Total Cost of shares)^(1/number of years)) - 1= (($90,108/$84,568)^(1/4)) - 1= (1.06769^(1/4)) - 1= 0.135 = 13.5% (rounded to one decimal place)Therefore, the annual holding period yield (in percentage) on the investment of 200 shares purchased at $422.84 a share and sold at $862.14 a share and a cash dividend of $11.24 per share is 14.27%. (rounded to two decimal places).

To know more about annual holding period please check the following link

https://brainly.com/question/30859488

#SPJ11

A family's financial plan is likely to be less complex than an
individual's.

True
False

Answers

Answer:

False

Explanation:

A family's financial plan inolves more than a single individual.

4) Activity 5: Check for ONE Make Your Stand: After graduation you decide to establish your own business. How will you organize it given the life cycle below? 1, Birth 2. Youth 3. Midlife 4. Maturity​

Answers

The business lifecycle can be defined as the phases that a business goes through since its conception. It is important that when opening your own business, you understand the phases of the business life cycle to better understand the business and develop strategies to help the business succeed.

1. Birth:

It is the stage where the business is created. In this phase, the company's facilities must be organized, strategic planning, hiring employees, buying stocks and publicizing the inauguration.

2. Youth:

At this stage, the business is becoming known in the market and is starting to generate positive financial results. It is a phase where the focus must be on customer loyalty and on the balance between expenses and income.

3. Middle age:

It is the phase where the business already has a clientele and has already conquered its market share, in this phase the quest is to ensure greater positioning and market leadership.

4. Maturity:

The company has already conquered a loyal clientele and supports itself, in this phase that can last for decades, the business is already consolidated and positioned. The focus therefore must be on maintaining market leadership and differentiation from competitors.

Therefore, the business lifecycle will help the entrepreneur to better manage and control market situations that directly impact the business.

Learn more here:

https://brainly.com/question/22377678

Currently, LLPs are often used to protect family businesses as they provide a way to resolve?

A) issues of family fiduciary duties and rights to represent and bind the business.
B) issues regarding transition from one generation to another.
C) capitalization disputes.
D) management disputes.

Answers

Currently, LLPs are often used to protect family businesses as they provide a way to resolve issues regarding transition from one generation to another.

LLPs were initially created to safeguard partners in partnerships inside professional service firms. The Limited Liability Partnership (LLP), which was first created to protect professional enterprises, is now widely employed by family businesses to address concerns related to the transfer of ownership between generations. The liability of each participant in a limited liability partnership (LLP) is restricted to the amount they invested in the company. Having business partners entails sharing the risk, utilizing unique talents, and creating a hierarchy of tasks.

Learn more on LLP -

https://brainly.com/question/14464440

#SPJ4

Other Questions
Oriole Ltd. has issued bonds that never require the principal amount to be repaid to investors. Correspondingly, Oriole must make interest payments into the infinite future. If the bondholders receive annual payments of $88 and the current price of the bonds is $1,100.00.What is the pre-tax cost of this debt? (Round answer to 2 decimal places, e.g. 15.25%.) The table represents a quadratic function.x y5 234 133 72 51 70 131 23What is the equation of the function? y = 2(x + 2)2 5 y = 2(x 2)2 + 5 y = (x + 2)2 5 y = (x 2)2 + 5 1 points You have purchased a put option on ABC common stock for 53 per contract. The option has an exerche price of 558 What is your net produce this options stock price is $46 at expiration? The following information presents financial results for the two models from last year: Private Label Branded TotalSales revenue $ 768,000 $ 480,000 $ 1,248,000Direct material 216,000 156,000 372,000Direct labor 144,000 96,000 240,000Manufacturing overhead Department A-101 $ 201,600Department A-102 230,400Total overhead $ 432,000The product costing system at EA allocates manufacturing overhead on the basis of direct labor costs. Required:Compute the profit or loss for each product using plantwide allocation. Compute the profit or loss for each product using department allocation he share price of Deep Sleep has been very close to 60 for a year and you think this will not change in the next few months. The price of a three-month put option with exercise price 60 is 6 and a call option for the same expiry date and exercise price sells for 10.(i) Define a simple strategy using a put and a call to produce a profit if your view on the future share price is correct.(ii) What is the maximum profit that can be made with this strategy?(iii) Show the profit or loss from this strategy if the share price of Deep Sleep in three months time is between 20 and 90. 1. Based on your knowledge, both explain and demonstratemathematically how and whyyou constructed your portfolio to meet the above standards. Makesure you comparethe importance and contrasts betwe Answer the following questions in a few sentences:1. What are some assumptions that you would modify to improve your IRR or CoCreturns on a buyout deal that only regards deal structure (Hint: revenue, COGs,SG&A, etc) cannot be adjusted since this is only regards to deal structure?2. What are some qualitative methods one could take to verify the financials of acompany as well as project the quality of revenue in the future?3. Based on class discussion explain how and why the quality of recurring revenue canpositively and/or adversely affect valuations.