Compromise theory on the optimal debt-equity mix

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Reference no: EM132039060

1. What is the effect of each variable in compromise theory on the optimal debt-equity mix?

2. Do futures contracts need to be regulated? If yes, what can go wrong without regulation? Give an example to explain your answer.

3. Today’s price of gold in the spot market is $1,500 per ounce. The price of a zero- coupon bond maturing in one year is $0.95. What will be the one- year forward price for gold?

Reference no: EM132039060

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