What is the one-year forward price on the stock

Assignment Help Financial Management
Reference no: EM131575400

A $50 stock pays a $1 dividend every 3 months with the first dividend coming in 3 months from today. If the risk-free rate is 6%, what is the one-year forward price on the stock?

Reference no: EM131575400

Questions Cloud

How much new stock will be issued next year : You are expected Sales to increase next year by 10% off of a base of $7,000 this year. How much new stock will be issued next year?
Calculate the prices of bonds : Calculate the prices of Bonds J and Bonds K. Are the bonds priced at a permium, at a discount or at par?
What must total asset turnover be : A firm wishes to maintain an internal growth rate of 8.3 percent and a dividend payout ratio of 40 percent. What must total asset turnover be?
What price would you get margin call : Suppose that you bought a contract at $27.42, putting up the initial margin. At what price would you get a margin call?
What is the one-year forward price on the stock : A $50 stock pays a $1 dividend every 3 months with the first dividend coming in 3 months from today. what is the one-year forward price on the stock?
Dividends when valuing forward contract on stock : With a flat yield curve, an analyst who mistakenly ignores the dividends when valuing a forward contract on a stock that pays cash dividends will most likely:
What should be the price of gold futures contract : What should be the price of a gold futures contract that expires in 90 days?
What is the initial dollar value of the forward contract : What is the initial dollar value of the forward contract, that is, the value of the contract as a financial instrument at contract inception?
Theory of foreign exchange rate determination : The most widely accepted theory of foreign exchange rate determination is purchasing power parity,

Reviews

Write a Review

Financial Management Questions & Answers

  How much must john invest

How much must John invest at the end of each of the next 25 years to be able to make the cash payment at retirement?

  The company also has two bond issues outstanding

Filer Manufacturing has 8 million shares of common stock outstanding. The current share price is $50, and the book value per share is $5. The company also has two bond issues outstanding. The first bond issue has a face value of $69.4 million and a c..

  What must the coupon rate be on the bonds

Volbeat Corporation has bonds on the market with 12 years to maturity. What must the coupon rate be on the bonds?

  Disbursement account

Which one of the following is a disbursement account into which funds are transferred from a master account only as the funds are needed to cover checks presented for payment?

  What is the value of the treynor measure of this portfolio

A stock has a total return of 16.4%, a standard deviation of 14.5% and a beta of 1.63. The market rate of return is 12.4%, while the market's Treynor measure is 6.3. What is the value of the Treynor measure of this portfolio?

  What is the yield to maturity

A Treasury STRIPS is quoted at 61.159 and has 10 years until maturity. What is the yield to maturity?

  Market liquidity vs. funding liquidity

Market liquidity vs. Funding liquidity according to Brunner Meier in his "Deciphering" article

  Capital allocation line-different borrowing-lending rates

You manage a risky portfolio with expected rate of return of 18% and standard deviation of 28%. The T-bill rate (lending rate) is 8% and borrowing rate is 10%. Your client’s degree of risk aversion is A = 3.5. Calculate the Sharpe-Ratio (reward-to-va..

  Identified investment project with the cash flows

Wainright Co. has identified an investment project with the following cash flows. If the discount rate is 10 percent, what is the present value of these cash fl

  Investors expect the market rate of return this year

Investors expect the market rate of return this year to be 12%. A stock with a beta of 1.2 has an expected rate of return of 14%. If the market return this year turns out to be 8%, what is the rate of return on the stock

  Applying for mortgage

When applying for a mortgage, find one that allows you to be able to pay more money than the required monthly payment.

  How many shares of stock will be outstanding after the stock

A firm has a market value equal to its book value. How many shares of stock will be outstanding after the stock repurchase is completed?

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