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sleet_krkn [62]
3 years ago
9

what would happen to the buying power of you investment after one year if your rate of return was 8% and the rate of inflation w

as 3%?
Business
1 answer:
fgiga [73]3 years ago
7 0
One year is 365 days plus leap year so 366 times 8% or 0.08 times 3% or 0.03 to get ur answer
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A municipal bond carries a coupon of 6.75% and is trading at par. What is the equivalent taxable yield to a taxpayer in a combin
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Answer:

10.23%

Explanation:

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The cost of equity is 10.6%.

<h3>What is the explanation?</h3>

The calculation of the question is shown as follows:

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<h3>What are retained earnings?</h3>

Retained earnings refer to the total amount of earnings that a company generates from its operations. This subtracts the dividends shared among stockholders. The retained earnings are then reinvested in business.

To know more about retained earnings, visit:

brainly.com/question/13980094

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The complete question is:

Scanlon Inc.'s CFO hired you as a consultant to help her estimate the cost of capital. You have been provided with the following data: r_RF = 3.25%; R_PM = 5.25%; and b = 1.40.

Based on the CAPM approach, what is the cost of equity from retained earnings?

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