What is the return on invested capital to investor

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Reference no: EM132056930

1. Assume the Intial Margin on a Swiss Franc Futures Contract is $2,000. if an indiviual purchases a contract at $0.78 per franc and the contract involves 125,000 Swiss Francs, what return on invested capital will the investor recieve if the price per franc moves to $0.80.

2. What is the return on invested capital to an investor who purchased a futures contract at a price of 297 and sells the contract for 308? The contract is on 5,000 units requires a 3% margin deposit and is priced in cents per unit

3. Portage Bay Enterprises has $4 million in excess cash, no debt, and is expected to have free cash flow of $13 million next year. Its FCF is then expected to grow at a rate of 4% per year forever. If Portage Bay's equity cost of capital is 9% and it has 55 million shares outstanding, what should be the price of Portage Bay stock?

Price of Portage Bay's stock is $________per share. (Round to the nearest cent.)

Reference no: EM132056930

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