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2 years ago

Keys Corporation's 5-year bonds yield 5.10% and 5-year T-bonds yield 4.40%. The real risk-

Business

1 answer:

alexdok [17]2 years ago

4 0

Answer:

.20

Explanation:

=> r(corp) = rf + ip + Ip + drp + mrp , so 5.10% = 2.50% + 1.50% + 0.50% + drp + [(5-1) * 0.1]%, now solving the equation for drp, we get = 5.10 - 2.50 -1.50 -0.50 - 0.4 = 0.20%

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If inflation in the U.S. is projected at 3% annually for the next 5years and at 7% annually in Turkey for the same time period,

GrogVix [38]

Answer:

6.86011 Turkish liras per US dollar

Explanation:

US's inflation 3% for the next 3 years

Turkey's inflation 7% for the next 3 years

current Lira/Dollar spot rate (L/$) = 5.6702 (liras per dollar)

inflation rate US = (1 + 0.03)⁵ = 1.159274
inflation rate Turkey = (1 + 0.07)⁵ = 1.402552

difference = 1.402552 / 1.159274 = 1.20985 x current spot rate = 1.20985 x 5.6702 = 6.86011

Since the Turkish inflation rate is higher than the American inflation rate, then the Turkish lira will depreciate faster than the US dollar.

5 0

2 years ago

Year cash flow 0 –$ 32,500 1 14,300 2 17,400 3 11,700 required: what is the irr of the above set of cash flows?

valina [46]

IRR = 15.76% i got that as my answer

4 0

2 years ago

A private university is made up of various "schools," such as the School of Journalism, the School of Business, the School of La

Oxana [17]

Answer:

The correct answer is D

Explanation:

SBU stands for Strategic business unit , it is a profit center whose focus is on the product offering and the market segment. It is usually have a marketing plan which is discrete, marketing campaign and analysis of competition, though it is a part of larger business entity.

So, the private university facing financial problems, they decided to become a profit center. Therefore, this scheme is parallel to SBU which is Strategic business unit.

6 0

2 years ago

The _ is the financial statement describing a firms yearly cash receipts and cash payments

erastova [34]

Statement of cash flows....

6 0

2 years ago

At the beginning of the year, long-term debt of a firm is $308 and total debt is $339. At the end of the year, long-term debt is

Gnoma [55]

Answer:

The amount of the cash flow to creditors is $74

Explanation:

Beginning of the year:

Long-term debt = $308

Total debt = $339

At the end of the year:

Long-term debt = $269

Total debt = $349.

Interest = $35

Net new borrowing = Ending Long-term debt - Beginning Long-term debt

= $269 - $308

= ($39)

Cash flow to creditors = Interest paid - Net new borrowing

= $35 - ($39) = $ 74

4 0

2 years ago