1. Cash Flow to Shareholders
Rack N Pinion Company had:
2008: 180 M common stock, 3.7 M paid in Surplus
2009: 195 M common stock, 3.95 paid in surplus
2009: Dividends of 80 K
What is the cash flow to shareholders for the company. Show work.
2. When the futures price is below the forward rate, astute investors may attempt to simultaneously ________ a currency forward and ________ futures in that currency.
a. Buy; buy
b. Sell; buy
c. Sell; sell
d. Buy; sell