Difference between risk-free interest rate-dividend yield

Assignment Help Financial Management
Reference no: EM131043462

Suppose the 180-day S&P 500 futures price is 1,537.77, while the cash price is 1,525.14. What is the implied difference between the risk-free interest rate and the dividend yield on the S&P 500? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

Reference no: EM131043462

Questions Cloud

What is the minimum expected annual return for stock : In order to fund her retirement, Michele requires a portfolio with an expected return of 0.11 per year over the next 30 years. She has decided to invest in Stocks 1, 2, and 3, with 25 percent in Stock 1, 50 percent in Stock 2, and 25 percent in Stock..
What is the total annual return for this bond : Suppose that an investor is planning to purchase a 9% semi-annual coupon bond selling at par with 10 years to maturity and plans to hold it for 4 years and sell it at an expected yield to maturity of 8.5%. The investor expects that he can reinvest th..
what happens to the NAV of growth mutual fund : Explain what happens to the NAV of a growth mutual fund (with 1 million share: outstanding) in the future if it now buys 100,000 Google July 720 calls for a premium of 18 if Google's stock price rises in the future to $755 by July 2016
What is the return shareholders are expecting : Ecolap Inc. (ECL) recently paid a $0.42 dividend. The dividend is expected to grow at a 10.50 percent rate. The current stock price is $47.32. What is the return shareholders are expecting?
Difference between risk-free interest rate-dividend yield : Suppose the 180-day S&P 500 futures price is 1,537.77, while the cash price is 1,525.14. What is the implied difference between the risk-free interest rate and the dividend yield on the S&P 500?
Home equity line of credit-tax-deductible meaning : A home equity line of credit (HELOC) is, loosely speaking, like a credit card for your home. You can borrow money by drawing down on the line of credit. But, because the borrowed money is for the purpose of your home, the interest is tax-deductible m..
Prove the given exponential identity : Prove the following exponential identity. Prove the following logarithmic identity. Solve the exponential equation for x and for y.
Describe the components of an ehr : What are your experiences with using an electronic information system (EHR)? Describe the components of an EHR, and using the assigned readings, any past experiences or observations, and your imagination
Global security policy-assignment preparation : Assignment: Write a 3-to 4-page paper describing the some of the issues you might face when maintaining security in a company that has offices in multiple countries.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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