Answer:
Management can implement a tax strategy to create future taxable income, but it will be detrimental to the future profitability of the company.- D.
Answer:
they need to put into the account $99444.97
Explanation:
given data
age = 14 year
time period = 4 year
saving account = $115000
fixed interest rate = 3.7% per year = 0.037
future value = $115000
solution
we get here present value that is express as
present value =
..........................1
put here value and we get
present value =
solve it we get
present value = $99444.97
so they need to put into the account $99444.97
Answer:
Basis risk for the future contract is 0.65%
Explanation:
Basis risk is the difference in spot price and future price of an hedged asset. It is the difference between the price price of an hedged asset and price of the asset serving as the hedge.
Basis risk = Futures price of contract − Spot price of hedged asset
Basis Risk = Future IMM index - Spot IMM index
Basis risk = 95.75% - 95.10%
Basis risk = 0.65%