What is the price of a 2-year equity-linked CD under the following terms? No coupon is paid. At maturity the CD pays 80.0% of the S&P 500 index appreciation. The S&P 500 price = 900, div = 0.02, ? = 0.20, and interest rates are 5.0%
A) $890.22
B) $990.23
C) $1064.20
D) $1110.55
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Wilbur Company purchased $10,000 of equipment on January 20, 2014. Wilbur uses the straight-line method to depreciate the equipment. The equipment has a 5-year useful life with no salvage value. Which of the following statements is correct?
A. Wilbur will record a cash inflow from operating activities of $2,000 in its 2015 financial statements. B. Wilbur will record a cash outflow from operating activities of $2,000 in its 2015 financial statements. C. Wilbur will record a cash outflow from investing activities of $2,000 in its 2015 financial statements. D. Wilbur will record no cash flows related to this asset on its 2015 statement of cash flows.
Various organizations publish summaries of selected ratios organized by industry for a sample of U.S. companies
a. True b. False Indicate whether the statement is true or false