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
stepladder [879]
4 years ago
15

The outstanding bonds of Riverside Tires Inc. provide a real rate of return of 5.6 percent. If the current rate of inflation is

4.68 percent, what is the actual nominal rate of return on these bonds
Business
1 answer:
Leya [2.2K]4 years ago
8 0

Answer: 10.54%

Explanation:

The Real rate of return is calculated as;

(1 + Real Rate) = (1 + Nominal Rate) / (1 + Inflation Rate)

1 + 0.056 = ( 1 + n) / ( 1 + 0.0468)

1.056 = (1 + n) / 1.0468

1.1054208‬ = 1 + n

n = 0.1054208

n = 10.54%

You might be interested in
Which of the following is a characteristic of a management control​ system? A. It deals with coordinating planning across the or
Katen [24]

Answer:

D. Helps managers to act rapidly and with autonomy

Explanation:

The management control system defines that every policy and procedure should be followed in a proper manner and work on new strategies for the benefit of the organization. It helps in managing the hierarchy level and differentiates the performance company resources like finance, marketing, sales, Human resource management, operations, etc.  

Therefore the management control system provides to work with sovereignty so that the work runs in a smooth and inefficient and effective manner. It also helps the managers to take the action quickly before things go out of control.

3 0
3 years ago
How to write a recommendation letter for a student?.
frutty [35]

Answer:

Ask the student for academic information. ...

Address your letter accordingly. ...

Introduce yourself and your qualifications. ...

Include details about your academic relationship with the student. ...

Highlight the student's qualifications with examples. ...

Conclude your letter.

Explanation:

7 0
2 years ago
How can you tell if you linked a account on your Xbox?
slega [8]

Answer:

if you get random payments like games or other things u didn't pay for

4 0
3 years ago
Kanye Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the manufacture of a new product. The m
nevsk [136]

Answer:

8%

Explanation:

The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.

The IRR can be calculated using a financial calculator.

Cash flow in year zero = $-165,000

Cash flow each year from year one to seven = $31,692

IRR = 8%

To find the IRR using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.

I hope my answer helps you

6 0
4 years ago
Mariano Manufacturing can issue a 25-year, 8.8% annual payment bond at par. Its investment bankers also stated that the company
aivan3 [116]

Answer: 10.13%

Explanation:

The after-tax return on the preferred shares would be:

= After-tax return + Premium required

= (8.8% * (1 - 25%)) + 1%

= 7.6%

For the preferred stock to be issued at par with the above after tax return:

= After tax return / ( 1 - tax)

= 7.6% ( 1 - 25%)

= 10.13%

4 0
3 years ago
Other questions:
  • Steve just computed the present value of a $10,000 bonus he will receive next year. The interest rate he used in his computation
    12·1 answer
  • Fortune Company's direct materials budget shows the following cost of materials to be purchased for the coming three months: Jan
    6·1 answer
  • Whom does inflation hurt the most?
    7·1 answer
  • Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs Recession 0.
    10·1 answer
  • Mention four things to consider before starting a business
    12·1 answer
  • Quantitatively, how important is international trade to the United States relative to the importance of trade to other nations?
    6·1 answer
  • On January 1, Year 1 Missouri Co. purchased a truck that cost $49,000. The truck had an expected useful life of 10 years and a $
    15·1 answer
  • I'm pretty sure I am about to get kicked off of this site;)
    7·2 answers
  • Suppose a country using the United States' system of calculating official unemployment statistics has 100 million people, of who
    15·1 answer
  • Explain the different methods of getting information about foreign employment.​
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!