According to the spot future parity, what should be the futures price of an Oil contract where their future price contract is selling at $1.590, the spot Oil prices are $1550 and the one year risk free rate is 2%.
Old Carriage Motor Co. manufactures cars and is loaded with $900 million debt at market value. The company generates $120 million in free cash flow per year. Its weighted cost of capital is 12%. What is your estimated value for the equity of the firm?

Answer rating: 100% (QA)

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