Explain business debt interest deductibility

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1. Please explain business debt interest deductibility? How can it help?

2. A non-dividend-paying stock has a futures contract with a price of $69.2 and a maturity of two months. If the risk-free rate is 3.4 percent, what is the price of the stock?

3. Suppose the 180-day S&P 500 futures price is 1,166.1, while the cash price is 1,151.32. What is the implied dividend yield on the S&P 500 if the risk-free interest rate is 3.2 percent?

Reference no: EM131343132

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