Non-dividend-paying stock has current share price

Assignment Help Financial Management
Reference no: EM13919560

A non-dividend-paying stock has a current share price of $58.38 and a futures price of $60.24. If the maturity of the futures contract is four months, what is the risk-free rate? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Reference no: EM13919560

Questions Cloud

Inflation-recession-high interest rates are economic events : Inflation, recession, and high interest rates are economic events that are best characterized as being-systematic risk factors that can be diversified away. company-specific risk factors that can be diversified away. among the factors that are respon..
Calculating cost of equity- portfolio weights : Calculating Returns: A stock with an initial price of $55 per share paid a dividend of $1.75 per share throughout the year, with an ending price of $59. Calculate the percentage total return of the stock.
Classify the cash flows from these transactions : Classify the cash flows from these transactions as operating activities (OA), investing activities (IA), or financing activities (FA). Use NA for transactions that do not affect the statement of cash flows.
Normally distributed with a population standard deviation : The heights were recorded for a Simple Random Sample of 270 freshmen. The mean of this sample was 66.5 inches. The heights are known to be Normally Distributed with a population standard deviation of 5.1 inches. Round answers to one decimal plac..
Non-dividend-paying stock has current share price : A non-dividend-paying stock has a current share price of $58.38 and a futures price of $60.24. If the maturity of the futures contract is four months, what is the risk-free rate?
What was the amt. of the deposit at the end of year : Calculating deposit needed. You put 10000 in an acct earning 5% . After 3 yrs you make another deposit into the same acct. seven yrs later ( that is 10 years after original 10000 deposit) the acct balance is 21000. What was the Amt. of the deposit at..
Develop a linear programming model that will enable toms : Develop a linear programming model that will enable Tom's to determine the mix of salsa products that will maximize the total profit contribution.
Decrease in sales affect the firms net income : The Detroit candy company has a DOL of 2.80. A 3% increase in operating income (EBIT) caused its net income to increase by 11.85%. How would a 2% decrease in sales affect the firm's net income?
Who are some pioneers in the evolution of tq : Who are some pioneers in the evolution of TQ? What are the main tenets of their philosophy? How can these philosophies be implemented in an organization?

Reviews

Write a Review

Financial Management Questions & Answers

  Why mrs qe might prefer one trial court over the other

Mrs. QE has decided to contest a $28,650 tax deficiency. She understands that she can initiate the litigation in district court or the Tax Court. Identify any reasons why she might prefer one trial court over the other.

  Using the free cash flow valuation model

Free cash flow valuation Nabor Industries is considering going public but is unsure of a fair offering price for the company. Estimate the value of Nabor Industries' entire company by using the free cash flow valuation model. Use your finding in part..

  Which position you would take and why you expect to profit.

Assume that you want to speculate on how six month cash market LIBOR now equal to 1.95% will move over the next year. You believe that consensus forecasts of future rates are too high. You can enter into an FRA and agree either to pay 2.25 percent an..

  What is the ex-dividend price of a share

What is the ex-dividend price of a share in a perfect capital market - What net tax savings per share for an investor would result from this decision?

  Face value bonds-what is the yield to maturity

The $1,000 face value bonds of Jasper International have a 7.5 percent coupon and pay interest annually. Currently, the bonds are quoted at 98.27 and mature in 3.5 years. What is the yield to maturity?

  Disregard tax shield from amortization of flotation costs

Suppose a company will issue new 25-year debt with a par value of $1,000 and a coupon rate of 8%, paid annually. The tax rate is 40%. If the flotation cost is 3% of the issue proceeds, then what is the after-tax cost of debt? Disregard the tax shield..

  In the hope of high returns venture capitalists provide

in the hope of high returns venture capitalists provide funds to finance new start up companies. however potential

  Using one of the equity standards

Keller works within the City and County of Denver and lives in the suburbs. His employer deducts $6.00 per month from his salary for deposit in the Denver budgetary revenue accounts. Using one of the equity standards, develop an argument making a cas..

  Standardized measure of how stocks perform relative

Correlation, a standardized measure of how stocks perform relative to one another in different states of the economy, has a range from _______

  What is the days sale outstanding

Snider Industries sells on terms of 3/10, net 35. Total sales for the year are $1,869,000. Thirty percent of the customers pay on the 10th day and take discounts; the other 70% pay, on average, 64 days after their purchases. What is the day’s sale ou..

  Expected return-market risk premium

Stock Y has a beta of 1.05 and an expected return of 13 percent. Stock Z has a beta of .70 and an expected return of 9 percent. If the risk-free rate is 5 percent and the market risk premium is 7 percent, are these stocks correctly priced?

  What is economic profit and accounting profit

What is economic profit and accounting profit with the information given?

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!

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