Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
An investor sold seven contracts of June/2012 corn. The price per bushel was $1.64, and each contract was for 5000 bushels. The initial margin deposit is $2000 per contract with the maintenance margin at $1250.
a) How much did the investor have to deposit on the investment?
b) The prices of the futures on the four days following the short sales were 1.60, 1.66, 1.70, and 1.75. Calculate the current balance on each of the next four days.
c) If the investor closed out her position on the fifth day, what was her final gain or loss over the five days in dollars and as a percentage of investment?
d) If the investor kept her position, and the futures price on the sixth day was 1.80, would the investor face a margin call? If yes, how much would she need to put up?
You have been asked to calculate the price of a firm using free cash flow evaluation. Last year XYX Company has Free Cash Flow of $12 million. You expect the cash flows to grow at 10% for the next two years, then at 9% for the following two years and..
You deposit $225 into an account which pays 6.5% per year for two years. However, the rate of interest drops to 3.5% thereafter. What is the value of your investment five years from today (assuming annual compounding)?
Determine the probability that 15 randomly selected jars of this brand of salsa will have a mean weight of less than 660 grams.
Barbarita’s Linens want to expand into the store next door to set up a Baby Supply Store. She needs $150,000 for the build out and new inventory of the project. Calculate the WACC. How much will the expansion cost in annual interest?
Scholes Industries has a target capital structure consisting of 45% debt, 10% preferred stock, and 45% common equity. The before tax YTM on Scholes's long term bonds is 9.5%, its cost of preferred stock is 8%, and its cost of equity is 12.5% if the f..
All else constant, which of the following will decrease the after-tax of debt for a firm?
Rust Bucket Motor Credit Corporation (RBMCC), a subsidiary of Rust Bucket Motor, offered some securities for sale to the public on March 28, 2008. Under the terms of the deal, RBMCC promised to repay the owner of one of these securities $100,000 on M..
It is true that the change in shareholders’ equity during a year is equal to the change in net assets in that year. This equation is important because:
Fly Away, Inc., has balance sheet equity of $5.6 million. At the same time, the income statement shows net income of $823,200. The company paid dividends of $452,760 and has 200,000 shares of stock outstanding. If the benchmark PE ratio is 23, what i..
Maturity Risk Premium The real risk-free rate is 3.25%, and inflation is expected to be 2% for the next 2 years. A 2-year Treasury security yields 9.25%. What is the maturity risk premium for the 2-year security? Round your answer to two decimal plac..
A motor capable of delivering 200 hp to steel rolling mill drive is being evaluated in a present economy study. The selected motor will only be utilized for one year, and it will have no market value at the end of the year. Pertinent data are summari..
If a corporation begins to suffer large losses, then the default risk on the corporate bond will increase. Illustrate graphically how this event affects the demand or supply what happens to equilibrium price and interest rate of the bond according.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd