Answer:
The current value of the stock is $12.63
Explanation:
price of a share
... 1
where, 
= price of a stock at t years
= dividend at year t
R= rate of return from market
g = growth rate of dividend
substituting into equation 1
= $1.2 ÷ 12% - 2.5%
= $1.2 ÷ 0.095
= $12.6316
= $12.63
Answer:
The question does not mention when does the farmer has to sell the cattles in the future. So assuming the cattles are to be sold in the next 3 months.
The farmer can short 3 contracts that have 3 months to maturity. Two contracts would be of the 40k cattles whereas one of 20k.
Explanation:
When the prices of the cattles falls in the future, the gain on the futures contract will offset the loss on the sale of the cattle. Whereas, when the prices of cattle rises in the future, the gain on the sale of the cattle will be offset by the loss on the futures contract.
So basically, using futures contracts to hedge has the advantage that it can at no cost reduce risk to almost zero.
Answer:
$574.71 billion.
Explanation:
The formula for calculating amount of deposits is as follows:
where,
D = Deposits
rr = required reserve rate
ER/D = excess reserve rate
C/D = non-bank currency to deposits
D = 574.712644
D = 574.71
Therefore, the amount of deposits is $574.71 billion.
I think the correct answer from the choices listed above is option C. <span>The facts that money must withstand the wear and tear that comes from being used over and over again is a measure of its durability. Hope this answers the question. Have a nice day.</span>
