Answer:
Explanation:
Being a juice producer, for which the raw material is oranges, Coolmist has to keep an eye on the prices of oranges. To protect herself from an increase in the cost of oranges, the financial engineering strategy that would be most beneficial to her is that she should buy in-the-money calls on oranges so that she will have an option to buy the oranges at the pre-decided strike price of the call option.
By doing the above, she would be protected against the price hike.
Answer:
Spot rate = 0.3807
Explanation:
Given:
Interest rates in the U.S. = 10% = 0.1
Interest rates in Switzerland = 4% = 0.04
Forward rate = $0.3864
Spot rate = ?
Day ratio = 90 days / 360 days = 0.25 (Assume 360 days in a year)
Computation of Spot rate:
Spot rate = Forward rate[1+(Domestic rate × Day ratio)] / [1+ (Foreign rate × Day ratio)]
Spot rate = 0.3864[1+(0.04 × 0.25)] / [1+(0.10 × 0.25)]
Spot rate = 0.3864[1+0.01] / [1+0.025]
Spot rate = 0.3864[1.01] / [1.025]
Spot rate = 0.390264 / [1.025]
Spot rate = 0.3807
A students wellness all depends on the proper rest, home environment, and self care. People seem to forget that which makes it hard for people especially students to succeed.
The answer is B. liabilities.
Answer:
Explanation:
Calculation of dividend amount for the preferred shareholders
Preferred Dividend =Per value of share * Dividend rate * Number of years
=88,000*5 * 10% * 2\
=$88,000
Thus cash dividend paid to common shareholder is $88,000
Calculations of cash dividend amount for common shareholder
Common share dividend= $165,000 - $88,000
=$77,000
Thus cash dividend paid to common shareholder is $77,000