Answer:
a gain for 2,670
Explanation:
We first calculate the difference betwene the prices
future price - expiration date = result per ton
1,696 - 1,607 = 89
We sale Cocoa in the future for 1,696
the price at expiration was 1,607
We sale at a higher price than market, this is a gain.
We have profits for $89 per ton
Each future contract has 10 tons and we sold 3 contracts
The total tons would be 3 x 10 = 30 tons
Now we multiply the gain per ton by the total tons sold
89 x 30 = 2,670
This will be the gain on future contract.
Answer:
c. 11.84%
Explanation:
We start fro mthe dividend gros model formula:
We must notice we need next year dividend to calculatethe value of the stock today so we calculate this first:
D1 = D0 x (1+g) = 0.8 x (1+.08) = 0.864
Now we plug the values into the formula and solve for return:
return = 0.1184 = 11.84%
Answer:
horizon value at year 5 = $94.3444
current intrinsic intrinsic value P₀ = $47.73
Assuming that the markets are in equilibrium, Goodwin's current expected dividend yield is and Goodwin's capital gains yield is <u>0(it pays no dividends)</u>.
Goodwin has been very successful, but it hasn't paid a dividend yet. It circulates a report to its key investors containing the following statement:
Goodwin's investment opportunities are poor.
Is this statement a possible explanation for why the firm hasn't paid a dividend yet?
<u>B. False</u>
Generally companies that are experiencing a rapid growth do not pay dividends, because they need all the cash that they can use to finance their expansion. Sometimes mature companies that have a steady growth rate will also choose not to pay dividends because they consider themselves as solid investments and not paying dividends allows them to grow more and should increase stockholders' wealth more.
Explanation:
D₃ = $5.50
D₄ = $7.073
D₅ = $9.096
D₆ = $9.642 (and a constant growth rate of 4.38%
Re = 14.60%
horizon value at year 5 = $9.642 / (14.6% - 4.38%) = $94.3444
intrinsic value P₀ = $94.3444 / 1.146⁵ = $47.73
