Answer:B. On acellus or edgeunity it’s b…
Explanation:
B. False 1: False The decision of the project should be made based on the net present value that it adds to the company and not the impact on
Answer:
See Below
Explanation:
We can use the future price formula here, which is:
Where
F is the theoretical future price
P is the present index standing
r_f is the risk free rate
d_y is the dividend yield
n is the number of months of the futures deliverable
Now,
given
P = 395
r_f = 0.1
d_y = 0.03
n = 3
Substituting, we get:
Actual future price is 404. The index future price is higher. So the strategy would be to sell the futures contracts. Long the shares underlying the index.
The Perfect Rose Co. has earnings of $1.70 per share. The benchmark PE for the company is 20.
What stock price would you consider appropriate? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Stock price = Earning per Share * PE Ratio
Stock price = 1.70*20
Stock price = $ 34
What if the benchmark PE were 23? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Stock price = Earning per Share * PE Ratio
Stock price = 1.70*23
<span>Stock price = $ 39.10</span>
