What is the present value of all relevant dividends

Assignment Help Finance Basics
Reference no: EM132853768

A stock is currently selling for 1,200. The stock pays a dividend of $20/quarter and the last dividend was paid 1 months ago. The risk-free rate is 10%. What is the present value of all relevant dividends for a futures contract that expires in 6 months?

Reference no: EM132853768

Questions Cloud

What is the optimum amount to make of each product : What is the optimum amount to make of each product to maximize profit and What is the optimum amount to make of each product to maximize profit
Calculate brad current ratio-liquidity ratio : Your childhood friend Brad MacDonald has asked you to help him gain control of his personal finances. Single and 30 years old, Brad is employed as a salesperson
How would you use the futures market to hedge your risk : Your analysis shows that the price of oil is likely to go up over the next three months. How would you use the futures market to hedge your risk?
What is the fair value of a futures contract : A stock is currently selling for 120. The stock pays no dividends. The risk free rate is 6%. What is the fair value of a futures contract that matures after 6 m
What is the present value of all relevant dividends : The risk-free rate is 10%. What is the present value of all relevant dividends for a futures contract that expires in 6 months?
What is the total-expected return offered by security : Suppose an investor with a12-year investment horizon is considering the purchase of a 4.5% APR, monthly payment mortgage with 23years
Find current market price of each share of stock : Suppose we operate a real estate development company which constructs 3income producing properties per year. Current labor and raw material costs total
Explain to me the purpose of jobkeeper : Explain to me the purpose of jobkeeper/seeker. And what was the rational for this and what are the long term impacts on debt markets
Should the game machines be upgraded : Should the game machines be upgraded and If they are upgraded, what is the opportunity cost?

Reviews

Write a Review

Finance Basics Questions & Answers

  What does exploding a bill of material mean

How are materials requirements planning, detailed capacity requirements planning, and shop floor control similar? Different?

  Explain the main factor that an organization should consider

Next, analyze the main factors that an organization should consider in determining the required rate of return for evaluating projects in global markets and the impact that this will have on decision making.

  What is the multi-factor productivity of the new process

The Abco Company manufactures electrical assemblies. The current process uses 10 workers and produces 200 units per hour. You are considering changing

  Which annuity would you recommend

Calculate to the nearest 1% the rate of return on each of the four annuities Raina is considering. Given Raina's stated decision criterion, which annuity would you recommend?

  The debt and equity option would consist of 16000 shares of

kelso electric is debating between a leveraged and an unleveraged capital structure. the all equity capital structure

  Find the modified duration of each bond

If market interest rates rise by 0.75%, find the percent change in the price of each bond. Express your answers as percentages rounded to two decimal places.

  Identify stakeholders in the school budget development

Identify stakeholders in the school budget development process and explain how the concept of "all of us are smarter than any one of us" can serve to ensure

  Discuss the acceptability of the new proposal

Discuss the acceptability of the new proposal by the manager of Marketing division if he is assessed and rewarded on his performance measured by using ROI.

  Determine additional percentage of the total variation

An economist is interested to see how consumption for an economy is influenced by gross domestic product and aggregate price.

  Customers to a sandwich shop arrive on average every six

customers to a sandwich shop arrive on average every six minutes according to a poisson distribution. the clerk can

  What is the fundamental principle of financial leverage

Why is the use of long-term debt financing referred to as using financial leverage?- What is the fundamental principle of financial leverage?

  Does this beta reflect the fund''s investment objectives

Would such a move be appropriate, given the investment objectives of the fund?

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