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baherus [9]
3 years ago
13

Suppose the real rate is 2.5 percent and the inflation rate is 4.1 percent. what rate would you expect to see on a treasury bill

?
Business
1 answer:
Ganezh [65]3 years ago
8 0
Thank you for posting your question here at brainly. The rate that would you expect to see on a treasury bill is <span>3.67%. Below is the solution:

</span><span>(1+R)= (1+r)*(1+h)
</span><span>R=((1+0.025)*(1+0.09))-1
</span><span>H=3.67%</span>
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5 0
3 years ago
Suppose your company needs $13 million to build a new assembly line. Your target debt-equity ratio is .55. The flotation cost fo
natulia [17]

Answer:<em>True cost = \frac{cost of assembly}{1-weighted flotation cost }</em>

<em>=  \frac{13,000,000}{1- 0.049}</em>

<em>= $ 13,669,821.2</em>

Explanation:

Given :

Debt-Equity ratio = 0.55

Flotation cost for new equity = 6%

Flotation cost for debt = 3 %

∴ To compute the weighted flotation cost , we'll use the following formula:

Weighted Flotation cost =\left [ \frac{1}{1+Debt-Equity ratio}\times Flotation cost of equity \right ] + \left [ \frac{Debt-Equity ratio}{1+Debt-Equity ratio}\times Flotation cost of debt \right ]

=  \left [ \frac{1}{1+0.55}\times 0.06 \right ] + \left [ \frac{0.55}{1+0.55}\times 0.03 \right ]

= 0.0387 + 0.0106

= 0.04934 or 4.93%

The true cost of building the new assembly line after taking flotation costs into account is evaluated using the following formula :

True cost = \frac{cost of assembly}{1-weighted flotation cost }

=  \frac{13,000,000}{1- 0.049}

= $ 13,669,821.2

3 0
3 years ago
What is one advantage of professional appearance?
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Answer:

D. gives a good impression to others

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3 years ago
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Answer:

Correct option is (b)

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In business communication, when replying to a claim made by the customer, the sender should begin with the good news that customer's request is complied with. This should be done to gain the customer's confidence.

The customer might be looking forward to this in the reply and he will be happy to read that, thereby retaining the customer.

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4 years ago
When Joe didn't have health insurance, he acted very cautiously, because he knew he would have to pay for any medical bills he i
pishuonlain [190]

Answer:

The correct option is B

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