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If you buy a call option on a Birr 200,000 bond futures contract with an exercise price of 220 and the
price of the Treasury bond is 222 at expiration, is the contract in the money, out of the money, or at
the money? What is your profit or loss on the contract if the premium was Birr 3000?
Company ABC has the following capital structure:
Sh
Ordinary share capital 300000
Retained earnings 150000
8% preference share capital 100000
10% debt finance 50000
Total Capital employed 600000
This company has been paying ordinary dividend of 10% per annum and expects equity to grow
at 6% per annum. Tax = 50%
Calculate the weighted Average Cost of Capital for this com�pany

If you buy a call option on a Birr 200,000 bond futures contract with an exercise price of 220 and the price of the Treasury bond is 222 at expiration, is the contract in the money, out of the money, or at the money? What is your profit or loss on the contract if the premium was Birr 3000?


If you buy a call option on a Birr 200,000 bond futures contract with an exercise price of 220 and the
price of the Treasury bond is 222 at expiration, is the contract in the money, out of the money, or at
the money? What is your profit or loss on the contract if the premium was Birr 3000?
When listing on the JSE ( Johannesburg Stock Exchange), JPe Ltd. wishes to have a full subscription and a successful share issue. The company values its shares at R50 a piece,Expert investors and insiders value the share at R44 a piece, at what price should JPe Ltd. offer their shares in order for them to have the best chance of a full subscription

You deposit $3000 into a bank account that compounds interest quarterly. If the APR is 2.5%, how much will you have in 5 years? Round to the nearest dollar, no commas. *


A company took to linear regression analysis to estimate their sales for the coming year,based on past sales, the company obtained the following equation in the format Y=a+bx: Y=0,5x+20 units in millions. If the equation was for the 10th period in the series, what would the estimate be for the coming year period 11?
Johan wants to buy a car for R550 000. He must pay a 10% deposit and take out a loan for the remaining amount. The interest rate on the loan is 8% pa compounded monthly over a period of 7 years.
2.1.1 Calculate the value of the deposit. (1)
2.1.2 Calculate his monthly payment. (5)
2.1.3 Johan thinks the loan will have an annual effective interest rate of 8,3%. Is Johan correct? Motivate your answer.

Consider the following series: 5 + 8 + 11 + 14 +...+164

1.1.1 Calculate the number of terms in the series. (3)

1.1.2 Calculate the sum of the series. (3)

1.1.3 Express the series in sigma notation.


Carl​ Hightop, a popular basketball​ player, has been offered a two​-year salary deal. He can either accept ​$2,300,000 now or accept monthly amounts of ​$100,000 payable at the end of each month. If money can be invested at 5.6​% compounded semi-annually​, which option is the better option for Carl and by how​ much?

The option is better by $?
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