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You have $1000 to invest. Current spot rate of British pound is £1 = $1.75, 1-year forward rate of pound £1= $1.70, 1-year deposit rate in U.S.= 6%, 1-year deposit rate in Great Britain = 10%.
(a) If you use covered interest arbitrage for a 1-year investment, what will be the amount of U.S. dollars you will have after 1 year?
(b) Based on your calculation, explain where do you want to invest?
Deltona issued preferred shares four years ago at $60 per share, with a promised dividend of $5 per share. The company's tax rate is 35%, and its common stock beta is 0.80. Yields on comparable risk preferred stocks are 9%. The floatation expense per..
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Short Answer and Short Problems, Briefly discuss the most important factors limiting the significant growth of a sole proprietorship or partnership?
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