An example of a ________ point is a distribution center or warehouse located between plants and stores

Ellis Manufacturing Inc has estimated FCFF for each of the next five years and believes that subsequent cash flows will grow at a constant annual rate of 3% indefinitely

If FCFF are $4,500,000 in year five, and the cost of capital is 9%, what is the value in year five of these terminal value cash flows? A) $50,207,200 B) $75,000,000 C) $77,250,000 D) There is not enough information to answer this question.

Dash Brevenshure works for the currency trading unit of ING Bank in London. He speculates that in the coming months the dollar will rise sharply vs. the pound. What should Dash do to act on his speculation?

A) Buy a call on the pound. B) Sell a call on the pound. C) Buy a put on the pound. D) Sell a put on the pound.