Answer:
See Below
Explanation:
We can use the future price formula here, which is:
Where
F is the theoretical future price
P is the present index standing
r_f is the risk free rate
d_y is the dividend yield
n is the number of months of the futures deliverable
Now,
given
P = 395
r_f = 0.1
d_y = 0.03
n = 3
Substituting, we get:
Actual future price is 404. The index future price is higher. So the strategy would be to sell the futures contracts. Long the shares underlying the index.
Answer: Sales 2,250,000
Explanation:
variable cost 1,250,000
25 x 50,000
Gross Profit 1,000,000
Fixed Cost
Selling & Administrative 300,000
Operating income 700,000
interest expense
10,000
non- controllable expenses 10,000
non-controllable income 690,000
income taxes 200,000
net income 490,000
Explanation:
the interest expense is not part of the operating cost, those cost are not part of the business activity. It is on the non-controllable expenses
An annuity is a series of payments made at even intervals. Examples of annuities include fixed deposits into savings accounts, monthly mortgage payments, monthly insurance payments, and annuity payments. Annuities can be classified by the frequency of payment dates.
Payments (deposits) can be made weekly, monthly, quarterly, yearly, or at other regular intervals. Annuities can be calculated by a mathematical function known as the "annuity function".
An annuity that provides payment for the rest of your life is an annuity.
There are three main types of annuities: fixed, variable, and index, each with its own level of risk and payout potential. Income from annuities is generally taxed at regular income tax rates rather than at the lower long-term capital gains tax rate.
learn more about annuity here. brainly.com/question/25792915
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Answer:
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