Answer:
8.7%
Explanation:
Given that,
Real risk free rate = 5%
Expected inflation:
This year = 3%
Next year = 3.5% and thereafter = 4%
Estimated maturity risk premium = 0.1 × (t - 1)%
t = number of years to maturity
Average inflation rate:
= (3% + 3.5% + 4%) ÷ 3
= 3.5%
Estimated maturity risk premium:
= 0.1 × (t - 1)%
= 0.1 × (3 - 1)%
= 0.2%
Therefore,
Yield on a 3 year treasury note:
= Real risk free rate + Average inflation rate + Estimated maturity risk premium
= 5% + 3.5% + 0.2%
= 8.7%
Answer:
custom jewelry
Explanation:
A job costing system refers to the process of collecting data about the expenses related to a particular job in manufacturing or service. To apply the cost information to a client underneath an agreement where expenses are refunded, this information might be needed.
The knowledge is also helpful in determining the quality of the forecasting method of a business, which ought to be able to cite rates allowing for a healthy profit. You could also use the details to attribute unchanging expenses to the finished goods.
Try making discount to 5% they will have to pay just a little more for what they are buying. Try moving the payment to 822,000 so you can save the 441 dollars.
Answer:
$66.67
Explanation:
according to the constant dividend growth model
price = d1 / (r - g)
d1 = next dividend to be paid
r = cost of equity
g = growth rate
According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)
required return = 4% + 0.75 ( 12% - 4%) 10%
4/ 0.1 - 0.04 = $66.67