Question
How do you solve this step-by-step? The answer is 38.83 KMW, Inc.plans to pay a dividend of $0.6 per share both 3 and 6 months
How do you solve this step-by-step? The answer is 38.83
KMW, Inc.plans to pay a dividend of $0.6 per share both 3 and 6 months from today. KMW's share price today is $40 and the continuously compounded quarterly interest rate is 1.6%. What is the price of a 6-month prepaid forward contract, which expires immediately after the second dividend?
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
16th edition
125927716X, 978-1259687969, 1259687961, 978-1259277160
