User Account

All Pages

Find the forward price

Assignment Help Finance Basics
Reference no: EM13289658

Find the forward price of a 30 month forward contract for a stock currently priced at $36, assuming that the risk free rate is 4% compounded continuously and that dividends are paid at continuous annual rate of 2.5%.

Reference no: EM13289658

Questions Cloud

How much will the sale of the building contribute : Woodstock Inc. expects to own a building for five years, then sell it for $1,500,000 net of taxes, sales commissions and other selling costs. Woodstock's cost of capital is 11%. How much will the sale of the building contribute to the NPV of the p..
Explain the mixture have a uniform spherical radius : All particles in the mixture have a uniform spherical radius of 0.094 mm. a) Calculate the mass of a single particle of Na2SO4 and the number of Na2SO4 particles in the mixture.
Design a synchronous counter with repeated sequence : Design a synchronous counter with the following repeated sequence:2-4-6-1-3-5. Build the counter with T flip-flops and minimized gates. Assume the (active low)asynchronous clear is tied to a logic 1.
How much will national geographic pay in income taxes : The old press is being sold for $350,000 and it has a net book value of $75,000. Assume that National Geographic is in the 40% income tax bracket. How much will National Geographic pay in income taxes from the sale?
Find the forward price : Find the forward price of a 30 month forward contract for a stock currently priced at $36, assuming that the risk free rate is 4% compounded continuously and that dividends are paid at continuous annual rate of 2.5%.
Determine how many people are in the room : construct a block diagram and an ASMD chart for a digital systemthat counts the number of people in a room. The one doorthrough which people enter the room has a photocell that changers asignal x from 1 to 0 when the light interrupted.
Aspects of a reaction affected by the addition of a catalyst : How are the following aspects of a reaction affected by the addition of a catalyst. 1) activation energy of the reverse reaction A) Increased B) Decreased
Determine the total electric force exerted on charge : Four charged particles are at the corners of a square of side, Determine the total electric force exerted on q
What is the effective annual interest rate : The interest rate is 0.574 percent per month. In addition, 5 percent of the amount that you borrow must be deposited in a noninterest-bearing account. Assume that your bank uses compound interest on its line-of-credit loans.

Reviews

Write a Review

Finance Basics Questions & Answers

  Determine expected return on stock

Distribution of rates of return on stock is as follows: State of Economy Probability of State Occurring Stock Return percent

  Diversified portfolio of financial assets

A primary advantage associated with holding a diversified portfolio of financial assets is the reduction of risk. The relevant risk a particular stock would contribute to a well-diversified portfolio is the stock's:

  Calculate christie cash conversion cycle

suppose Christie's managers believe the annual inventory turnover can be raised to 9 times without affecting sales. What would Christie's cash conversion cycle, total assets turnover, and ROA have been if the inventory turnover had been 9 for the ..

  What is the after-tax net cash flow for the year of the sale

Half-year convention does not apply to this asset. After 4 years, the rig is sold for $65,000. If the effective income tax rate is 40%, what is the after-tax net cash flow for the year of the sale.

  Explain how interest rates impact the scenario

Create a scenario where an investor would benefit from using forward and future contracts to hedge and Explain how interest rates impact the scenario.

  What was the delta ray brands net income after-tax

Assuming a federal income tax rate of 34%, what was the Delta Ray Brands net income after-tax?

  Find real cost of hedging payables

Suppose zero transaction costs. If the ninety day forward rate of the euro is an accurate estimate of the spot rate 90 days from now, then the real cost of hedging payables will be:

  Determine net present value of the acquisition

Determine net present value (NPV) of the acquisition to DM shareholders when it costs an average $30 per share to acquire all of the outstanding shares?

  What annual rate of return would she have earned

Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

  Foreign exchange rate

If a country is running a current account deficit year after year, what should we expect to happen to the exchange rate for that country? Explain your answer.

  Describe how stock prices are determined in stock markets

Describe how stock prices are determined in stock markets and how derivatives can be used to hedge or speculate on stock prices. Examples should include put and call options and stock index futures.

  Formulate and justify an investment policy statement

Mr. Jones is forty-five years old and is in good health. He is married, and has two children aged 17 and 18. He and his wife own all shares in a Limited Liability Corporation that owns a tavern and adjacent restaurant presently valued,

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd