1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
DochEvi [55]
3 years ago
8

With no inflation, a bank would be willing to lend a business firm $5 million at an annual interest rate of 6%. But if the rate

of inflation was expected to be 4%, the bank would most likely charge the firm an annual interest rate of rev:________________
Business
1 answer:
MAXImum [283]3 years ago
8 0

Answer:

The nominal interest rate which the bank will offer is of 10.24%

Explanation:

according to Irwin formula the bank will charge a nominal rate that ensures a real rate of 6% thus:

\frac{1+r_n}{1+ \theta} -1 =r_e

(1+r_e)(1+ \theta) -1 = r_n

1.06*1.04-1 = 0.1024 = 10.24%

You might be interested in
At a rate of 6.5%, what is the future value of the following cash flow stream?
ad-work [718]

Answer:

Total future value= $645.8

Explanation:

Giving the following information:

Year 0 1 2 3 4

CFs: $0 $75 $225 $0 $300

Interest rate= 6.5%

<u>To calculate the future value, we need to use the following formula on each cash flow:</u>

FV= PV*(1+i)^n

Cf1= 75*1.065^3= 90.60

Cf2= 225*1.065^2= 255.20

Cf3= 0

Cf4= 300

Total future value= $645.8

6 0
3 years ago
You have decided to enter the candy business. You are considering producing two types of candies: Slugger candy and Easy Out can
lions [1.4K]

Answer:

$8000

Explanation:

Assume he uses sugar equally

For slugger candy must contain sugar and 20% nuts

5000*(30000*0.2)

=8000 ounces

For easy out candy  must contain sugar and 10% nuts and 10% chocolates

5000+(30000*0.1)+(30000*0.1)

=8000 ounces

Revenue= 8000*$0.6 +8000*$0.4

               $8000

4 0
3 years ago
A property is listed for sale at $235,000. A buyer's offer of $220,000 is rejected by the seller. Six months later, the seller r
atroni [7]

Explanation:

the property's market value is the $210,000

8 0
3 years ago
Deployment Specialists pays a current (annual) dividend of $1 and is expected to grow at 22% for two years and then at 5% therea
AleksAgata [21]

Answer:

The value of the stock = $19.64

Explanation:

According to the dividend valuation model, <em>the value of a stock is the present value of the expected future cash flows from the stock discounted at the the required rate of return.</em>

Year                     Workings                        Present value(PV)

1                 $1 × (1.22)  × 1.11^(-1)  =                     1.10

2                 $1 × (1.22)^2 ×(1.11)^(-2) =                1.21

3                 $1 × ((1.22)^2 × (1.05))/0.11-0.05) = 21.35 ( PV in year 2 terms)

PV (in year 0) of Year 3 dividend  = 21.35 × 1.11^(-2)

                                      = 17.33 (see notes)

<em>The value of the stock</em> = $1.10+ $1.21 + 17.3

                                      = $19.64

Notes:

<em>Note the growth applied to year 3 dividend gives the PV in year 2 terms. So we need to re-discount again to year 0.</em>

<em />

The value of the stock = $19.64

                                     

8 0
2 years ago
Your résumé should always begin with the title RESUME at the top.<br> True or False
docker41 [41]

I believe that statement is False

A resume usually required to be sent to a specified email address that is used by a member of company's human resources, they would know what resume look like without having to put that title. It would be best to put your photos or general information at the top of the resume.

4 0
3 years ago
Read 2 more answers
Other questions:
  • The following stock transactions were completed by the executive vice president of Vinco, Inc., a publicly traded corporation: J
    6·1 answer
  • The question - in your opinion, why do most economists oppose policies that restrict free trade or trade among nations
    6·1 answer
  • Hache Corporation uses the weighted-average method in its process costing system. The first processing department, the Welding D
    7·1 answer
  • Nancy operates a business that uses the accrual method of accounting. In December, Nancy asked her brother, Hank, to provide her
    12·1 answer
  • Mervon Company has two operating departments: Mixing and Bottling. Mixing occupies 25,380 square feet. Bottling occupies 16,920
    6·1 answer
  • Oxygen Optimization is considering the caffeine project, which would involve selling caffeinated oxygen for 1 year. The firm exp
    11·1 answer
  • What is a job interview
    5·2 answers
  • Assume the following information for Windsor Corp. Accounts receivable (beginning balance) $140,000 Allowance for doubtful accou
    14·1 answer
  • Anyone want brainly??
    10·2 answers
  • Supercenters stock a wide variety of products including groceries, clothing, electronics, and home goods. This breadth of offeri
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!