Answer:
1. Real risk-free rate.
2. Nominal risk free-rate.
3. Inflation premium.
4. Liquidity risk premium.
5. Liquidity risk premium.
6. Maturity risk premium.
Explanation:
Market interest rates can be defined as the amount of interests (money) paid by an individual on deposits and other financial securities or investments. The factors that typically affect the market interest rate known as the determinant of market interest rates are;
1. This is the rate on short-term U.S. Treasury securities, assuming there is no inflation: Real risk-free rate r*
2. It is calculated by adding the inflation premium to r*: Nominal risk free rate.
3. This is the premium added to the real risk-free rate to compensate for a decrease in purchasing power over time: Inflation premium.
4. This is the premium added as a compensation for the risk that an investor will not get paid in full: Liquidity risk premium.
5. This premium is added when a security lacks marketability, because it cannot be bought and sold quickly without losing value: Liquidity risk premium.
6. This is the premium that reflects the risk associated with changes in interest rates for a long-term security: Maturity risk premium.
Answer:
Fixed costs= $300,000
Explanation:
Giving the following information:
Selling price per unit= $20
Variable expenses= $14
Break-even point in units= 50,000
<u>To calculate the fixed costs, we need to use the following formula:</u>
Break-even point in units= fixed costs/ contribution margin per unit
50,000= fixed costs / (20 - 14)
50,000*6= fixed costs
Fixed costs= $300,000
Answer:
245 free throws
Explanation:
x will be number of times Audreys makes a shot, and let y be total number of the shots.
x/y = .875
(x+13)/(y+20) = .860
Let solve for x in equation 1
x = .875y
We will plug the for x in the equation 2
(.875y+13)/(y+20)
= .860
.875y + 13
= .860y + 17.2
.015y = 4.2
y = 280
Audreys has taken 280 shots.
We will Plug that back into the equation 1 in order to find out how many Audreys made.
x/280 = .875
x = 245
Hence :
Audreys made 245 free throws
