Solution :
Given :
The stock index contracts at = $ 394.85
Index = $ 392.54
Risk fee rate = 2.83 %
Dividend = 2.08 %
Now take long position on the index at $ 392.54 per share
After 75 days, they have to pay $ 392.54 + 392.54 x 2.83 x 75/365
= $ 394.823
Take s short position on the stock index futures contract on $ 394.85 per share.
Dividends received = $ 392.54 x 2.08%
= $ 8.164
Therefore, there is an arbitrage opportunity.
Answer:
- $1,099,890 billion.
Explanation:
Marginal propensity to consume (MPC) = 0.990
Tax multiplier = - MPC ÷ (1 - MPC)
= - 0.990 ÷ (1 - 0.990)
= - 9
9
change in GDP = Change in taxes × Tax multiplier
= $11110 × (-99)
= - $1,099,890
the minus sign shows a decrease
Hence, the change in equilibrium GDP is - $1,099,890 billion.
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Answer:
$3,424
Explanation:
Calculation for What is the service cost to be included in the current year's postretirement benefit expense
Service cost=December 31 $ 68,480*1/20 years
Service cost=$3,424
Therefore the service cost to be included in the current year's postretirement benefit expense will be $3,424
Answer:
Sunrise Enterprises
Impact of Selected Transactions on the Current Ratio:
Current Ratio Current Assets Current Liabilities
(1) increase increase no change
(2) decrease no change increase
(3) decrease decrease no change
(4) increase increase no change
Explanation:
a) Data and Calculations:
Current assets = $1,090,000
Current liabilities = $602,000
Current ratio = 1.8 ($1,090,000/$602,000)
b) The current ratio (the ratio of current assets to current liabilities) is affected by increases or decreases in current assets without equal increases or decreases in current liabilities and vice versa.