Answer:
Determinants of Interest Rates The real risk-free rate is 4%. Inflation is expected to be 4% this year, 5% next year, and then 4.5% thereafter. The maturity risk premium is estimated to be 0.0006 × (t - 1), where t = number of years to maturity. What is the nominal interest rate on a 7-year Treasury security?
The nominal interest rate = 8.86%.
Explanation:
Average inflation premium = (4%+5%+4.5%+4.5%+4.5%+4.5%+4.5%)/7 = 31.5%/7 = 4.50%
Maturity risk premium for 7 year bond = 0.0006 * (7-1) = 0.36%
Nominal interest rate = real risk free rate + inflation premium + maturity risk premium = 4% + 4.50% + 0.36% = 8.86%.
Therefore, the nominal interest rate for the question given = 8.86%.
The answer to the question is (A) a direct incentive.
A direct incentive refers to <em>a type of incentive that is given in order to cause an action to occur. </em>
A direct incentive is generally tangible to the person who is targeted by it. In contrast, its opposite, an indirect incentive refers to a type of incentive that a person receives indirectly by choosing to do something. It is usually less tangible than a direct incentive.
Answer:
The size of the dividend per share of stock depends on: The corporation's profit
Dividend per share is calculated by: Total dividend / Total shares outstanding,
Which means that dividend per share will increase if the total dividend increases.
Meanwhile, the total dividend will be increased if the company gains more profit
Answer:
Debt to Asset Ratio 0.3331 or 33.31%
Explanation:
Debt to Asset Ratio = Total Debt / Total Assets
Debt to Asset Ratio = Total Liabilities / Total Assets
Debt to Asset Ratio = 43,300 / 130,000
Debt to Asset Ratio = 0.3331 = 33.31%
d.Total liabilities 43300 Total assets 130000 is used to calculate Debt to total asset ratio.
* I am not sure that in the question given the a, b,c,d and e
1. are the option to choose
or
2. this is all the data to calculate debt to total asset equity.
In cash Condition 1.
Answer is " d.Total liabilities 43300 Total assets 130000 "
In cash Condition 2.
Answer is " 0.3331 or 33.31% "
