Gold is trading at $1500, but one year Gold contracts are trading at $1600. The CME defines the Gold contract as 100 ounces/c, $/c, $12,000, $9,000. Your commodities broker quotes you $17/ ounce storage and insurance, $400/ounce borrowing fee on gold, and 7.5% on cash balances - all per annum. JQ Investor decides to arbitrage this price difference using 600 ounces of Gold. If JQ takes this arbitrage right to delivery he will make a profit (loss) of $. (dollars, rounded to two places after the decimal)

Anew firm is developing its business plan. it will require $615,000 of assets, and it projects $450,000 of sales and $355,000 of operating costs for the first year. management is reasonably sure of these numbers because of contracts with its customers and suppliers. it can borrow at a rate of 7.5%, but the bank requires it to have a tie of at least 4.0, and if the tie falls below this level the bank will call in the loan and the firm will go bankrupt. what is the maximum debt ratio the firm can use? (hint: find the maximum dollars of interest, then the debt that produces that interest, and then the related debt ratio.)a. 41.94%b. 44.15%c. 46.47%d. 48.92%e. 51.49%