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Serga [27]
3 years ago
8

You are considering investing money in Treasury bills and wondering what the real​ risk-free rate of interest is.​ Currently, Tr

easury bills are yielding 6.5 % and the future inflation rate is expected to be 3.1 % per year. Ignoring the cross product between the real rate of interest and the inflation​ rate, what is the real​ risk-free rate of​ interest?
Business
1 answer:
alisha [4.7K]3 years ago
8 0

Answer:

3.4%

Explanation:

Data provided in the question:

Normal rate of return = 6.5%

Expected Inflation rate  = 3.1 %

Now,

The  real​ risk-free rate of​ interest is given as

Real​ risk-free rate of​ interest = Normal rate of return  - Expected Inflation rate

Therefore,

Real​ risk-free rate of​ interest = 6.5% - 3.1%

or

Real​ risk-free rate of​ interest = 3.4%

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The Phelps Company's common stock is currently trading for $25.50 per share. The stock is expected to pay a $2.80 dividend at th
Lynna [10]

Answer:The correct option is C  = 0.98%

Explanation:

Ok so we do 25.50 - 2.80 because its being taken out

then we divide the answer we get by 10

or multiply it by .10

Hope this helps :)

3 0
3 years ago
Tucker Company makes chairs. Tucker has the following production budget for January - March. January February March Units Produc
ziro4ka [17]

Answer:

Total= 45,684 feet

Explanation:

Giving the following information:

Production budget:

February= 10,993

March= 8,559

Each chair produced uses 5 board feet of wood.

Management wants an ending inventory level of raw materials to equal 20% of the production needs (in wood) for the next month.

Direct material budget:

Production= 10,993*5= 54,965

Desired ending inventroy= (8,559*5)*0.2= 1,712

Beginning inventory= (10,993*5)*0.2= (10,993)

Total= 45,684 feet

6 0
3 years ago
A ______ is a division of the firm itself that can be managed and operated independently from other divisions. Multiple choice q
grandymaker [24]

Strategic business unit (SBU) is a division of the firm itself that can be managed and operated independently from other divisions.

<h3>What is strategic business unit (SBU)?</h3>

It is a business unit that runs independently and it is focused on a target or particular market.

  • It is a big market that has its own various support functions that include training departments, hiring department.

Therefore, Strategic business unit (SBU) is a division of the firm itself that can be managed and operated independently from other divisions.

For more details on strategic business unit kindly check

brainly.com/question/24684801

6 0
2 years ago
Which of the following is NOT true about the Free Application for Federal Student Aid (FAFSA)?
Firdavs [7]

Answer:

It provides early admission

Explanation:

I do not know the answer word for word, but I do know that out of the four answer choices (it provides scholarships, grants, early admission, and financial aid), it does not provide early admission, therefore making it your answer.

"In order to qualify for federal student aid and a lot of other scholarships and grants, you need to fill out the Free Application for Federal Student Aid (FAFSA)" -Everfi

7 0
3 years ago
Read 2 more answers
When dave, a restaurant owner, had his seafood business destroyed by hurricane katrina, he believed that he was in control of hi
Luden [163]

Dave is an individual with an <u>"Internal locus of control".</u>


Locus of control is a person's belief system with respect to the reasons for his or her encounters and the components to which that individual characteristics achievement or disappointment.  

In the event that a man has an internal locus of control, that individual credits accomplishment to his or her own endeavors and capacities. A man who hopes to succeed will be more roused and more inclined to learn.  

Psychological research has discovered that individuals with a more internal locus of control appear to be in an ideal situation, e.g. they have a tendency to be greater accomplishment situated and show signs of improvement paying employments.

7 0
3 years ago
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