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Sergeu [11.5K]
2 years ago
8

Is the futures price of a stock index greater than or less than the expected future value of the index? Explain your answer.

Business
1 answer:
stepan [7]2 years ago
8 0

Answer:

It can be greater as well as less.

Explanation:

1st of all we should know what is Future Price and what is Stock Index.

The futures price can be more or less that the predicted fee.

When futures costs are lower than predicted price spot fees, the situation is known as normal backwardation.

When futures prices are higher than anticipated spot charges, it is called normal contango

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Auto parts manufacturer JEG Inc. has a number of vacancies at lower management levels and wants to fill the positions from withi
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Answer:

B)Unqualified applicants will need explanations about why they did not get the job.

Explanation:

From the question we are informed Auto parts manufacturer JEG Inc. who has a number of vacancies at lower management levels and wants to fill the positions from within the company itself rather than recruit externally. The company plans to e-mail the job specifications to all employees and post the jobs on the company Web site. In this case, what could weaken the company's decision, is that Unqualified applicants will need explanations about why they did not get the job.

7 0
1 year ago
Hawar International is a shipping firm with a current share price of $5.50 and 10 million shares outstanding. Suppose Hawar anno
Vika [28.1K]

Answer: a. $5.50

b. $6.1

c. $3,500,000

Explanation:

a. From the question, we are informed that Hawar International is a shipping firm with a current share price of $5.50 and 10 million shares outstanding and that Hawar announces plans to lower its corporate taxes by borrowing $20 million and repurchasing shares.

We are informed that Hawar announces plans to lower its corporate taxes by borrowing $20 million and repurchasing shares. This is a transaction and therefore, the value if the share won't be changed. So, the value for the share will still be $5.50.

b. If the only imperfection is corporate tax rate of 30%, the share price after this announcement will be:

= [30% × (20million/10million)] + $5.50

= [0.3 × 2] + $5.50

= $0.6 + $5.50

= $6.1

Therefore, the share price be after this announcement will be $6.1.

c. If the share price rises to $5.75 after this announcement, the PV of financial distress costs Hawar will incur as the result of this new debt will be:

= ($6.1 - $5.75) × 10,000,000

= $0.35 × 10,000,000

= $3,500,000

3 0
2 years ago
Mr. alvarez studied the soap products on the store shelf. he looked for products with a familiar logo. this is an example of whi
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Answer:

brand image

Explanation:

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In 2010, the general social survey had a question which asked respondents if they were willing to pay higher prices to help the
Sergio039 [100]

Answer: Both ‘8.2%’ and ’14.6%’ are descriptive statistics.

Descriptive statistics summarize and describe the features of the data in a study or survey numerically.

In this question, the information just tells us the percentage of people who had a particular opinion for a given question. Hence these percentages describe the data.


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2 years ago
The most frequent reason that some corporations send their manufacturing operations outside of the united states is to find high
marishachu [46]

To find highly skilled workers who are specialized

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