ABC Company had cash flows for the year as follows ($ in millions): CASH RECEIVED FROM: Customers $ 2,900 Interest on investments 220 Sale of land 150 Sale of common stock 630 Issuance of debt securities 2,100 CASH PAID FOR: Interest on debt $ 330 Income tax 90 Debt principal reduction 1,700 Purchase of equipment 3,800 Purchase of inventory 1,050 Dividends on common stock 240 Operating expenses 450 ABC Company would report net cash inflows (outflows) from operating activities in the amount of:

The treasurer for pittsburgh iron works wishes to use financial futures to hedge her interest rate exposure. she will sell five treasury futures contracts at $139,000 per contract. it is july and the contracts must be closed out in december of this year. long-term interest rates are currently 7.30 percent. if they increase to 9.50 percent, assume the value of the contracts will go down by 20 percent. also if interest rates do increase by 2.2 percent, assume the firm will have additional interest expense on its business loans and other commitments of $149,000. this expense, of course, will be separate from the futures contracts. a. what will be the profit or loss on the futures contract if interest rates increase to 9.50 percent by december when the contract is closed out

Double corporation acquired all of the common stock of simple company for

The returns on the common stock of maynard cosmetic specialties are quite cyclical. in a boom economy, the stock is expected to return 22 percent in comparison to 9 percent in a normal economy and a negative 14 percent in a recessionary period. the probability of a recession is 35 percent while the probability of a boom is 10 percent. what is the standard deviation of the returns on this stock?