Arbitrage-free forward price per share-dixon corporation

Assignment Help Finance Basics
Reference no: EM132796814

Today's stock price for Dixon Corporation is $34.68 per share and the interest rate for continuous compounding is 2.55%. The stock pays a $1.87 per share dividend 3 months from today. There are no other dividends. What is the arbitrage-free forward price per share for a contract that expires 8 months from today?

Reference no: EM132796814

Questions Cloud

What is balanced in balanced literacy : What is "balanced" in Balanced Literacy? How does Balanced Literacy allow for a more student-centered approach to reading instruction?
Describe the major types of individual power in organisation : What are the downsides, if any, of building a diverse workforce? Answer this question in 300 words (support your arguments with key research findings
Post the transactions to the merchandise inventory account : Post the transactions to the merchandise inventory account. Compare the total in this account with the total of the cash paid during March
How did erikson understand the nature of learning : How did E.Erikson understand the nature of learning? The main character of the movie episode shown below goes through a life crisis, as Erik Erikson would say.
Arbitrage-free forward price per share-dixon corporation : There are no other dividends. What is the arbitrage-free forward price per share for a contract that expires 8 months from today?
What are ways educators can promote critical thinking : What are ways educators can promote critical and reflective thinking with students? How does this strengthen the students' skills and ownership.
Compute dow basic and diluted earnings per share : Compute Dow's basic and diluted earnings per share for the year ended December 31, 2018. (Enter your answers in thousands.)
Determining the speculator mark-to-market for the day : The futures settlement level at the end of the day is 3,797.76. What is the speculator's mark-to-market for the day?
What standard of ethical practice might be violate by hiring : Thinking about this situation, do you think the principal should hire Jerry? Could the principal be violating the Code of Ethics by hiring him?

Reviews

Write a Review

Finance Basics Questions & Answers

  What rate of return are you earning on the loan

What rate of return are you earning on the loan? Round to two decimal places.

  How much must the donor contribute today to fully fund

If the scholarship is invested to earn an annual real return of 5 percent, how much must the donor contribute today to fully fund the scholarship?

  What are the initial cash flows in year 0

What are the Initial Cash Flows in Year 0? What are the Operating Cash Flows in Year 2?

  Discuss the straight-line method to amortize bond premium

Paris Electric sold $3,350,000, 12%, 10-year bonds on January 1, 2017. The bonds were dated January 1 and pay interest annually on January 1.

  What is the most you can pay for the stock today

Analysts expect a stock to be selling for $22 in one year. It is also expected to pay a $1 dividend during the year. If you require a 15% return on this kind of investment, what is the most you can pay for the stock today.

  Investors and issuers of stock

What is ß and why is it important to investors and issuers of stock? Describe the behavior of stocks with ßs of greater than one, less than one.

  Compute the effective annual return

What is? Avicorp's pre-tax cost of? debt? Note: Compute the effective annual return.

  What amount should your friend deposit

You've decided that you are going to put away money for retirement from each of your paychecks. You plan to deposit $300 from each of your monthly paychecks.

  How much can notes payable increase without the current

The company plans to raise funds in the short-term debt market and invest the entire amount in additional inventory. How much can notes payable increase without the current ratio falling below 1.50?

  At what price should the bonds sell

D. J. Masson Inc. recently issued noncallable bonds that mature in 10 years. They have a par value of $1,000 and an annual coupon of 5.5%. If the current market interest rate is 7.0%, at what price should the bonds sell?

  Herken company is a closely held corporation with a capital

herken company is a closely held corporation with a capital structure composed entirely of common stock and retained

  What is the interest amount due on the loan

Jose has a 25,000 loan with a 5% annual interest rate, with a payment due April 1st. What is the interest amount due on the loan?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd