BUSINESS COLLEGE

A single stock futures contract on a nondividend-paying stock with current price $180 has a maturity of one year. a. If the T-bill rate is 4.0%, what should the futures price be? (Round your answer to 2 decimal places.) Futures price $

b. What should the futures price be if the T-bill rate is still 4.0% and the maturity of the contract is three years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Futures price $

c. What if the interest rate is 6.5% and the maturity of the contract is three years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Futures price $

Answers

Answer 1
Answer:

Answer:

a. $187.20.

b. $202.48.

c. $217.43.

Explanation:

Please find the below for detailed explanations and calculations:

We have the formula for determining the future price of the non-dividend-paying stock as below:

Future price = Spot price x (1+ annual risk free rate )n; which n = number of year(s) to maturity.

Thus, apply the general formula above, we have the below calculations:

a. Future price = 180 x (1+4%)^1 = $187.20;

b. Future price = 180 x ( 1+4%)^3 = $202.48;

c. Future price = 180 x (1+6.5%)^3 = $217.43.  

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Which one of the following statements is TRUE?(A) One tool of corporate governance is choosing a good investment banker.
(B) One tool of corporate governance is how the company's charter affects the likelihood of a takeover.
(C) One tool of corporate governance is a company's tax avoidance strategy.
(D) Creditors have a claim on a firm's earning stream through the dividend payments they receive.
(E) One tool of corporate governance is stock repurchases.

Answers

Answer:

Correct Answer is "A"

(A) One tool of corporate governance is choosing a good investment banker.

Suppose the economy is initially in long-run equilibrium. Then suppose there is an increase in military spending. According to the model of aggregate demand and aggregate supply, what happens to prices and employment in the short run

Answers

Answer:

prices rise, employment rises.

Explanation:

In the starting equilibrium price, there would be more demand that result in fall in the firm inventory. Now in order to maintain the level of the inventory the firm would have to rise the production for this the firm should hire more wokers due to this the employment would rise also the wages are more paid as compared to before so it increase the production cost that results in rise in price

Therefore the above represent the answer

The best way to investigate fraudulent transactions on your credit card is to:

Answers

you can check on your account online or when you get your statement it will have all the charges from that billing period.

What is the purpose of the New Window command?It opens a new blank worksheet.
It opens one of the current worksheets into a new window.
It opens a blank workbook.
It opens a new side-by-side window of an existing workbook.

Answers

Answer:

It opens one of the current worksheets into a new window.

Answer:

It opens one of the current worksheets into a new window.

Explanation:

edge 2020 lesson-managing workbook properties

Yakov is skilled at making both bracelets and necklaces. Yakov has no preference between making bracelets or necklaces since he earns the same amount from the two activities. If the selling price of necklaces increases from $12 to $24, then Yakov's opportunity cost of making bracelets and making bracelets is now profitable than making necklaces. Suppose that the bracelets market consists of several suppliers like Yakov who are skilled at making both bracelets and necklaces. Which of the following is likely to happen to the supply curve of bracelets when the price of a necklaces increases?a. It shifts to the right
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Answers

Answer:b. It shifts to the left

Explanation:

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Bohemian Company has 500,000 shares of no par common stock with a stated value of $8 per share issued and outstanding as of January 1, originally issued for $14 per share. During 2018, Bohemian Company had the following transactions involving its own stock: On March 6, acquired 27,965 shares of treasury stock at a cost of $12 per share On April 18, resold 5,280 shares of treasury stock at $19 per share. On June 11, resold an additional 2,210 shares of treasury stock at $10 per share If Bohemian uses the cost method of accounting for treasury stock, what will be the balance in additional paid in capital from treasury stock as a result of these transactions?

Answers

Answer:

$32540

Explanation:

The balance in additional paid in capital treasury stock as a result of the transactions is $32540.

The beginning balance was set at 0.

March 6 Acquisition in the treasury stock = 27965 shares × $12

In additional paid capital it is 0.

April 6 Reissued in treasury stock = 5280 shares × $12 while in additional paid capital = 5280 shares × $7 (19-12).

Please kindly see attachment to see the step by step working and the answer.

Answer:

Amount paid for the treasury stock on March 6 = $12*27,965 = $335,580

Total Amount realized on the resale of Treasury stock

April 18  =  5280*$19 =                                                          $100,320

June 11 =  2210*$10 =                                                             $ 22,100

                                                                                                  $122,420

cost of treasury stock sold

( $12 * 7,490)                                                                             (89,880)

Balance in additional paid in  capital from treasury stock      $32,540

Explanation:
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