Do you favour anti-gouging laws as a means of protecting consumers from high prices following natural disasters, such as Hurricane Katrina in New Orleans? If so, why? If not, why not?
Answer to relevant QuestionsSuppose your company’s method of making decisions under risk is “making the best out of the worst possible outcome.” What rule would you be forced to follow? 1. Company A issued $7,000,000 of a bond on 1-1-x1 for 98 (meaning 98%). The bonds have a 10 year life, stated interest rate of 12%, semiannual interest payments. 2. Company B issued $3,000,000 of a bond on 1-1-x1. Since ...A U.S. company purchases goods from a Japanese company for 10 million yen. The current spot rate is $1 = ¥87. The 60-day forward rate is $1 = ¥96. What is the dollar difference between what the company would pay now and ...ABD is planning an IPO. Its underwriters say the stock will sell at $20. The direct costs will be $800,000. The underwriters will charge a 7% spread. (a) How many shares must be sold to bet $30 million? (b) If the stock ...Southlake Corporation issued $900,000 of 8% bonds on March 1, 20X1. The bonds pay interest on March 1 and September 1 and mature in 10 years. Assume the independent cases that follow.Case A—The bonds are issued at 100.Case ...
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