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ICE Princess25 [194]
3 years ago
7

5-year Treasury bonds yield 5.5%. The inflation premium (IP) is 1.9%, and the maturity risk premium (MRP) on 5-year bonds is 0.4

%. What is the real risk-free rate, r*? 3.87% 3.52% 3.20% 2.88% 2.59%
Business
1 answer:
tangare [24]3 years ago
7 0

Answer:

option 3.20%

Explanation:

0.055-0.019-0.004 =0.032 = 3.20%

The inflation premium is added to the real risk-free rate as well to the maturity risk premium

A no risk rate would be 3.2

because there is a certain change for inflation a premium is added, also another premium is added to prevent investor to purchase the bond on a lower price.

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The calculation of diluted earnings per share assumes that stock options were exercised and that the proceeds were used to buy t
dusya [7]

Answer:

The correct answer is (A)

Explanation:

Diluted earnings per share is a technique which is used by firms and organisations to measure the equality of earning per share (EPS).  Similarly, various procedures are used to measure (EPS), the diluted earnings per share uses the average market price of the current or the reported period to buy treasury stocks to exercise stock options.

4 0
4 years ago
According to the video, what is the work environment of Loading Machine Operators like? Check all that apply.
cupoosta [38]

Answer:

noisy, dusty, cramped, dangeroues

Explanation:

just did on edugunity

5 0
3 years ago
Read 2 more answers
Burger King developed a new french fry to compete with McDonald's fry-considered the world's best. Burger King's specifications
RSB [31]

Answer:

screen

Explanation:

Based on the scenario it can be said that  It is most likely that Burger King did not screen the idea for both technical and commercial value. Screening refers to when a company reanalyzes something (which in this case would be the idea) in order to make sure that it is good and meets all the requirements and standards that have been placed by the company.

8 0
3 years ago
Tennessee Corporation is analyzing a capital expenditure that will involve a cash outlay of $109,332. Estimated cash flows are e
sammy [17]

The internal rate of return for this investment is 12%

Option C

Solution:

PV of Cash Outlay = PV of Cash Inflow

109332 = 36000*PVIFA (Rate,4)

PVIFA(rate,4) = 109332/36000

PVIFA(rate,4) = 3.037

The present value factors for an annuity of $1 for 4 years at interest of 12% is 3.037

So IRR = 12%

7 0
3 years ago
Henway Inc has a clause in its employment contract that identifies the state law that will apply to any disputes that arise unde
Gekata [30.6K]

Answer:

correct answer is a. forum selection clause

Explanation:

solution

the correct answer is forum selection clause because as it suggests you forum selection  

forum selection allows the party to choose the forum or the specific way to deal with the dispute between the two parties  

so here organization Henway has chosen state law as that the way to deal with the dispute  

so that correct answer is forum selection clause

7 0
3 years ago
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