Suppose you are a Canadian resident. The spot rate for the British pound currently is £0.5086 per C$1. The one-year forward rate is £0.4975 per C$1. A risk-free asset in Canada is currently earning 4 percent. If interest rate parity holds, what rate (approximately) can you earn on a one-year riskfree British security?

ABC, Inc. has 25,000 shares of stock outstanding at a market price of $20. The firm has $500,000 in outstanding debt. Earnings for next year are projected at $100,000. The firm plans on spending $120,000 on capital projects next. The firm also maintains a constant debt-equity ratio. What is the projected dividend amount per share if the firm follows a residual dividend policy?

The expected inflation rate in Norway is 1.0 percent while it is 3.0 percent in Canada. A risk-free asset in Canada is yielding 6.25 percent. What (approximate) real rate of return should you expect on a risk-free Norwegian security?

Suppose it is now the beginning of year 2020, and you own 200 shares of Hi-Tek, Inc. stock. The company has stated that it plans on issuing a dividend of $0.30 per share at the end of this year and then issuing a final liquidating dividend of $1.05 per share at the end of next year. Your required rate of return is 10%. Ignoring taxes, what is the value of one share of Hi-Tek stock for you? 

Which of the following is the correct chronology of a dividend payment?

Suppose you are a Canadian resident. In the spot market, C$1 is currently equal to £0.5086. The expected inflation rate in the U.K. is 3 percent and it is 4 percent in Canada. What is the (approximate) expected exchange rate three years from now, if relative purchasing power parity holds?

Your friend Cindy bought 100 shares of ABC Inc. stock on January 20th at $12.05 per share. ABC Inc. declared a $0.60 per share dividend on February 24th, with a record date of Friday, March 24th, and a payment date of April 15th. Cindy sold her 100 shares on Wednesday March 22nd at a price of $13.80 per share. According to the current TSX rules, ex-dividend date is one business day prior to the record date, how much would Cindy make on this investment?

Chase Manufacturers has an unhedged risk profile that shows the firm adding value when sudden price fluctuations move upward and losing value when the price moves downward. If the company hedged its financial risk by purchasing a put option, then the company would most likely ______ value when prices rose and ______ value when prices fell.

Suppose the employees of WestJet borrowed heavily to buy all of the firm's stock and take the company private. This would be an example of a(n):

The risk related to changes in the value of international assets as a result of governmental actions is called ________________ risk: