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jasenka [17]
3 years ago
9

You’ve observed the following returns on Barnett Corporation’s stock over the past five years: –27.3 percent, 15.2 percent, 33.4

percent, 3.1 percent, and 22.1 percent. The average inflation rate over this period was 3.31 percent and the average T-bill rate over the period was 4.3 percent. What was the average real risk-free rate over this time period?
Business
1 answer:
lilavasa [31]3 years ago
8 0

Answer:

The average real risk-free rate over this time period was 0.96%

Explanation:

According to the given data we have the following:

average inflation rate=3.31%

average T-bill rate=4.3%

Hence, in order to calculate the average real risk-free rate over this time period we can use the fisher equation as follows:

(1 + R) = (1 + r)(1 + h)

= (1.043/1.0331) – 1

= 0.0096=0.96%

Therefore, the average real risk-free rate over this time period was 0.96%.

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Torch Industries can issue perpetual preferred stock at a price of $58.50 a share. The stock would pay a constant annual dividen
Snezhnost [94]

Answer:

11.96%

Explanation:

Calculation for Torch Industries company's cost of preferred stock,

Using this formula

Cost of preferred stock = Dividend / Stock Price * 100

Where:

Dividend =$7.00

Stock Price = $58,50

Hence,

= $7 / $58.50 * 100

= 11.96%

Therefore the company's cost of preferred stock will be 11.96%

3 0
3 years ago
If the price of good A decreases by 10 percent and the quantity demanded of good B increases by 10 percent, this is evidence tha
Lostsunrise [7]

Answer:

b. complement goods

Explanation:

Complement goods -

These are the type of goods , that are related to each other in a certain manner , is referred to as complement goods.

These type of good are also referred to as paired goods or associated goods .

In case of complement goods , if a person buys first good , then he might require the second good too.

These goods can even alters the prices of each other .

For example ,

people buying a CD player , need to buy the corresponding CD too , and hence ,

CD player and CD are complement goods.

Hence , from the given scenario of the question,

The correct option is b. complement goods .

A complementary good is a good whose use is related to the use of an associated or paired good. Two goods (A and B) are complementary if using more of good A requires the use of more of good B.

6 0
3 years ago
Which of the following statements is FALSE regarding resignations in the workplace? The most qualified employees are often the o
Musya8 [376]

Answer:

The correct option is the statement that reads " If a firm commits to making its environment a good place to work,workers will not leave"

Explanation:

The most qualified employees are always been poached because of the value they add to any organization,hence the first statement is absolute truth.

The second statement  is wrong because there the best working environment cannot stop people from resigning,what in case someone needs to study masters abroad?

A certain level of turnover is healthy since it paves from for new hands with fresh perspective to be hired.

However, when turnovers becomes excessive,it implies a fundamental problem with the workplace.

7 0
3 years ago
Tara has found a CTSO she’s interested in joining. How can Tara become a member of the CTSO? Tara can become a member of the CTS
ICE Princess25 [194]

membership fee. should be correct

3 0
3 years ago
Read 2 more answers
The shareholders of Flannery Company have voted in favor of a buyout offer from Stultz Corporation. Information about each firm
Nonamiya [84]

Answer:

The answer is "$4.311".

Explanation:

Calculating the EPS after the merger:

\text{Stultz Corp Post Merger Earnings} = 220,000 + 1,000,000 \\\\

                                                      = \$1,220,000

\to \text{Number of Shares Post Merger:} \\\\=\frac{99,000}{3} + 250,000\\\\ = 283,000\\\\\text{EPS Post Merger} =\frac{\text{Stultz Corp Post Merger Earnings}}{\text{Number of Shares Post Merger}} \\\\

                            = \frac{1,220,000}{283,000} \\\\= \$4.311

7 0
2 years ago
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