Southern Fields has an inventory of 838,000 pounds of sugar. The firm placed a partial hedge on this inventory by selling 6 futures contracts at 9.56. The futures contracts are based on 112,000 pounds and are quoted in cents per pound. At the time the firm sold the sugar, the spot rate was 9.63. How much profit did the firm lose because of the hedge? exam spreadsheet (8).xlsx

Which one of the following statements is correct according to Malkiel’s Theorems?

What is the percentage of a firm’s earnings that is distributed to shareholders called?

The model used to value a stock that pays a dividend which increases at a constant rate forever is referred to as which one of the following? Assume the growth rate is less than the discount rate.

A financial instrument on which a futures contract is based is called which one of the following?

An investor who shifts risk is referred to as which one of the following?

Which one of the following is correct concerning the two-stage dividend growth model?

You purchased four September corn futures contracts at what turned out to be the lowest price of the day and sold those contracts at today’s close. What is your total profit or loss on this investment? Contract Open High Low Close September, Corn, 5,000 bushels, cents per bushels 615.50 618.25 608.00 613.50 September, Wheat, 5,000 bushels, cents per bushels 814.00 820.00 808.50 811.00 exam spreadsheet (8).xlsx

Rolling Company bonds have a coupon rate of 5.20 percent, 20 years to maturity, and a current price of $1,146. What is the YTM? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Do not include the % sign) exam spreadsheet (8).xlsx  

Which disaster recovery plan test involves members of the disaster recovery team reading through the plan together to uncover potential gaps and bottlenecks in the response?