Establishment Industries stock is priced at $50 and is expected to pay a yearend dividend of $6,

Question:

Establishment Industries stock is priced at $50 and is expected to pay a yearend dividend of $6, If the one-year interest rate is 5%, what should be the futures price on a one-year futures contract on the stock?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamentals Of Corporate Finance

ISBN: 9781264101566

11th Edition

Authors: Richard A. Brealey, Stewart C. Myers, Alan J. Marcus

See More Books

Question Posted: Jan 04, 2023 03:05 AM

See More Questions

MDLZ stock sells at $45.20 and is expected to pay dividends of $.17 in 3, 6, 9 and 12 months respectively. The risk-free rate is 4% per annum continuously compounded for all maturities. We consider...
Assume that Vogl stock is priced at $50 per share and pays a dividend of $1 per share. An investor purchases the stock on margin, paying $30 per share and borrowing the remainder from the brokerage...
Assume that Duever stock is priced at $80 per share and pays a dividend of $2 per share. An investor purchases the stock on margin, paying $50 per share and borrowing the remainder from the brokerage...
To Premium From Actuarial Rating Advertising Sales Actuarial Premium 1e% 25% 15 60 The direct operating costs of the departments (including both variable and fixed costs) are Actuarial Premium rating...
Explain how you might use different types of research (focus groups, observation, survey, and experiment) to forecast market reaction to a new kind of disposable baby diaper, which is to receive no...
What happens to the radial distance of the event horizon as more and more mass falls into a black hole? Please explain.
In Figure P28.73, point P is the common center of two circular arcs of wire, the larger of radius $70 \mathrm{~mm}$ and the smaller of radius $20 \mathrm{~mm}$. What are the magnitude and...
On the Clark and Company Inc. balance sheet, indicate the amount that should appear for each of the items (a) through (n) on the balancesheet. Clark and Company Inc Consolidated Balance Sheet...
18.A sine wave is travelling in a medium. The minimum distance between the two particles, always having same speed, is (1) (2)
Collyer Products Inc. has a Valve Division that manufactures and sells a standard valve as follows: The company has a Pump Division that could use this valve in the manufacture of one of its pumps....
(a) "Cash equivalents are the same as cash. Do you agree? Explain. (b) How should restricted cash funds be reported on the balance sheet?
State in each case whether you would expect the futures price to rise or fall. a. The price of gold rises (gold futures) b. Interest rates fall (stock market index futures) c. The cost of storing...
Sarah dies on 16 December 2017 , having made net capital losses of 7,300 between 6 April 2017 and the date of her death. Her net gains in the previous three years (and the annual exemption for each...
The company to work on is Tbk Creative . Make at least 5-6 relevant and measurable goals for your company's ( Tbk Creative) digital presence for next 3-6 months. Give as much information as possible...
You are to select an existing hospitality business . This business will be used for all assessments in this subject . Choose a business you are familiar with , it could be where you work or a...
Suppose a country in autarky ( No free trade ) has the supply curve Qs = 2 P + 1 0 ( for P > = 0 that is , you should disregard the part of the supply curve that is below the horizontal axis )...
Demonstrates limited knowledge of health problem including social determinants and behavioral determinants. Also discuss what is the difference between them.
Use your choice of question as the heading for the work. Use the sub-headings below to structure the report for this week and transfer this directly into your final assessment. 2.1 Critical analysis...
Does support for suicide (death with dignity) vary by social class? Is this relationship different in different nations? Small samples in three nations were asked if it is ever justified for a person...
On July 1, 2011, Flashlight Corporation sold equipment it had recently purchased to an unaffiliated company for $480,000. The equipment had a book value on Flashlights books of $390,000 and a...
What are the four primary disadvantages of the sole proprietorship and partnership forms of business organization? What benefits are there to these types of business organization as opposed to the...
What are the primary disadvantages of the corporate form of organization? Name at least two advantages of corporate organization?
In response to the Sarbanes-Oxley Act, many small firms in the United States have opted to go dark delist their stock. Why might a company choose this route? What are the costs of going dark?
When is quick sort better to use than merge sort? When is radix sort better to use than merge sort? Include examples of each. Include source.
Give a complete justification of The merge-sort tree associated with an execution of merge-sort on a sequence of size n has height log n .
I'm trying to merge sort a list of strings in c#. I've got a list of movie titles I need to merge sort and it is returning the list back to me in the same unsorted format as the original list I pass...

Establishment Industries stock is priced at $50 and is expected to pay a yearend dividend of $6,

Question:

Step by Step Answer:

Future Price spot pr...View the full answer

Fundamentals Of Corporate Finance

Students also viewed these Business questions