On July 15, 2016, you convert 610,000 U.S. dollars to Japanese yen in the spot foreign exchange market at the spot rate of 104.91/$ and purchase a six-month forward contract to convert yen into dollars at the forward rate of $0.0095320/. How much will you receive in U.S. dollars at the end of six months?

598,443

620,377

610,001

614,235

An investor has a 34 percent ordinary income tax rate and a 18 percent long-term capital gains tax rate. The investor holds stock in a firm that could pay its usual $1 per share dividend or reinvest the cash in the firm. The stock price is currently $30 per share. If the firm does not pay the dividend, the share price will rise. If it pays the dividend, the share price will stay the same. By how much must the share price rise if the dividend is not paid in order to make the investor indifferent between receiving the dividend or not?

		$1.00
		$0.59
		$0.97
		$0.80