Answer:
$273
Explanation:
the futures price = current stock price x (1 + T-bill rate)ⁿ
- current stock price = $260
- T-bill rate = 5%
- n = is not given, but since the T-bill rate is for one year, I will suppose the futures contract is also for one year
the futures price = $260 x (1 + 5%)¹ = $260 x 1.05 = $273
A futures contract is a contract by which a buyer or seller is obligated to either purchase or sell (respectively) a stock or other security at a specific price in a specific date in the future.
Answer:
true
Explanation:
acid test ratio can be calculate by ( Current assets – Inventory ) / Current liabilities. Ideally, the acid test ratio should be 1:1 or higher, however this varies widely by industry. In general, the higher the ratio, the greater the company's liquidity. by selling up equipment in exchange of cash, the will assist the company to be able to handle its current liability with the cash injection into the entity.
Answer:
$328000
Explanation:
Given: Cost of machine= $880000
Residual value= 60000
Estimated life= 10 years
Company use straight line depreciation method.
∴ Depreciation =
⇒ Depreciation=
∴ Depreciation= per year.
Now, lets find the value of depreciation.
∵ Machine is sold on December 31, 2019, which is 6 years after it is installed.
∴ Depreciation value after 6 years=
Depreciation value after 6 years=
Next, finding the value of machine after 6 years of depreciation.
Value of machine after 6 years=
∴ Disposal value of machine after 6 years of usage is , however, machine was sold at $225000.
<span>This demonstrates the problem of overemphasis on means instead of ends. The college was trying to increase the enrollment by lowering their standards. This can create more issues for the college in the future, and the college will have more issues to deal with.</span>