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Suppose that a trader enters into a long futures position for 1000 oil barrels with a delivery date on December 2016 and a future price of $40 per barrel. Suppose that on delivery date, the spot price of oil is $45 per barrel. What is the payoff to the long position?
This co. is required to replace its trucks regularly owing to the importance of providing a reliable service to customers. The company is considering investing in a new truck at a cost of K1.2 million. Finozest’s bank has indicated that it can offer the company a finance lease with payments of K292,510.00, payable annually in arrears for five years. There is no residual payment or value. Kindly ignore taxation.
1. What is the interest rate implicit in the finance lease?
2. Assume that the bank wishes to keep the lease payment at K292,510.00 but requires that the annual payments are payable in advance. How does this change the interest rate implicit in the lease?
3. Assume that the truck has an expected residual value of K450,000 at the end of five years and the bank takes this residual value into account in setting the lease payments, which are payable annually in advance. How would this change your lease payment?
1. The expected annualized fixed coupon income and yield rate on the bond.
2. The present value of the investment
3. The yield to maturity of the bond
a. Make journal entries of depreciation and relevant ledger accounts under the two depreciation methods listed below. Also show the impact of accumulated depreciation in balance sheet.
In each case, assume that a full year of depreciation was taken in 2011.
1. Straight-line.
2. 200 percent declining-balance.
a. Make journal entries of depreciation and relevant ledger accounts under the two depreciation methods listed below. Also show the impact of accumulated depreciation in balance sheet.
In each case, assume that afull year of depreciation was taken in 2011.
1. Straight-line.
2. 200 percent declining-balance.
You go into a cafe and you see on the menu that coffee costs R20.50, a muffin costs R10.29 and a sweet costs 59 cents. You order a coffee and a muffin. Your friend orders a muffin and 2 sweets. What's the correct way to work out the bill on a calculator
Suppose that the stock of the company CFAA is currently trading on April 15 at a price of $70. A call option with a strike price of $70 and an expiration date on October 15 is trading at $4. What is your profit if the stock price at expiration date is $80? Remember that each option contract is for 100 shares.
#339914 on Dec 2023