Ask question

Ask question

All categories

3 years ago

5

The 6-month futures price on a non-dividend-paying stock is $36.20. the risk-free rate is 2.75 percent and the market rate is 9.

60 percent. what is the spot rate for this stock if spot-futures parity exists?

1 answer:

Otrada [13]3 years ago

4 0

$15.82 (a.k.a answer B)

You might be interested in

Expenses associated with an employee's leaving include indirect costs such as the cost of having the work completed by some othe

puteri [66]

Answer:

false

Explanation:

because they is alor of nskfksjdjxjsjsjxjs

4 0

3 years ago

Torque roz, an automobile company, uses a unique tire design on its vehicles. a rival company was found copying the exact design

Kitty [74]

Torque toz's unique tire design is a registered trademark

5 0

3 years ago

Sunset Resort, a successful 100-year-old hotel and resort, entered into a co-marketing arrangement with Sleepytime Hotels, a fiv

professor190 [17]

Answer:

Yes its true that both companies are strategic allies.

Explanation:

In strategic alliance, two companies work together to achieve their combined objectives. For example if we talk about Sony Ericson K510i cellphone, it was one of best selling cell phones at its time because two companies Sony and Ericson worked together to increase their sales and earn profit. One of these had display and camera capabilities and the other had cellphone designs, etc. These were the things that made the product differentiated from the rest of the cellphones and we see that both companies earned a lot from it.

3 0

3 years ago

Problem 14-13 Calculating the WACC [LO3] Dinklage Corp. has 4 million shares of common stock outstanding. The current share pric

sleet_krkn [62]

Answer:

WACC = 8.97%

Explanation:

total value of equity = $70 x 4,000,000 = $280,000,000

cost of equity:

$70 = $4.4935 / (Re - 4.5%)

Re - 4.5% = 6.42%

Re = 10.92%

total value of debt:

$75 million x 0.95 = $71,250,000

YTM = {70 + [(1,000 - 950)/25]} / [(1,000 + 950)/2] = 72 / 975 = 7.3846%

$60 million x 1.07 = $64,200,000

YTM = {60 + [(1,000 - 1,070)/8]} / [(1,000 + 1,070)/2] = 51.25 / 1,035 = 4.9517%

weighted cost of debt = ($71,250,000 / $135,450,000 x 7.3846%) + ($64,200,000 / $135,450,000 x 4.9517%) = 3.8845% + 2.347% = 6.2315%

total value of the firm = $280,000,000 + $135,450,000 = $415,450,000

equity weight = $280,000,000 / $415,450,000 = 0.674

debt weight = 1 - 0.674 = 0.326

WACC = (0.674 x 10.92%) + (0.326 x 6.2315% x 0.79) = 7.36% + 1.605% = 8.965% = 8.97%

8 0

3 years ago

Sarah found success as an entrepreneur by employing a relationship marketing strategy. The goal of this strategy is to:_______

Brums [2.3K]

Answer:

work closely with existing customers to better satisfy their wants and needs.

Explanation:

Relationship marketing is simply the development, growth, and sustaining of long-term, cost-effective relationships with individual customers, suppliers, employees, and other partners for mutual benefit of parties involved. It emphasize is placed more in retaining or sustaining customers because new customers are more expensive compared to existing customers and can help an organisation have long-term, cost-effective links with individual customers for benefits between both sides.

7 0

3 years ago