Answer:
Given that,
Operator bought a futures contract = 5,000 kilograms of rice at $1.50 per kilogram
Initial margin = $4,000
Maintenance margin = $2,000
(a)
(i) Balance of Margin = Initial margin - maintenance margin
= $4,000 - $2,000
= $2,000 (loss)
(ii) Change in price =
= $0.40
(b) Price per kilogram = Current price - Change in Price
= $1.50 - $0.40
= $1.10
So, change price per kg is $1.10
(c) Balance of Margin = Initial margin - maintenance margin
= $4,000 + $2,000
= $6,000 (loss)
Change in price =
= $0.40
(d) Price per kg = Current price - change in price
= $1.50 + $0.40
= $1.90
Answer: 10.13%
Explanation:
The after-tax return on the preferred shares would be:
= After-tax return + Premium required
= (8.8% * (1 - 25%)) + 1%
= 7.6%
For the preferred stock to be issued at par with the above after tax return:
= After tax return / ( 1 - tax)
= 7.6% ( 1 - 25%)
= 10.13%
Answer:
If the FIFO method is used, the equivalent units of production during the month equal:_________122,000
Explanation:
<u>FIFO Equivalent Units </u>
Particulars Units % Of Completion Equivalent Units
Materials Conversion Materials Conversion
Beginning Inventory 10,000 60 60 6000 6000
+Units Transferred 120,000 100 100 120,000 120,000
Less
<u>Ending Inventory 20,000 20 20 4000 4000</u>
<u>FIFO Equiv. Units 122,000 122,000</u>
<u />
<em>FIFO method uses the beginning units and deducts the ending units. For this we add the beginning units and deduct the Ending units to get the First In First Out units. AS the name suggests it only deals with the beginning units First purchased or produced and leaves the ending units Last produced.</em>
Answer:
$1.96
Explanation:
The disparity between the delivery price and the actual forward price discounted at the specified discount rate will be the current value.
Thus, it can be calculated by using the following formula: