Answer:
Determinants of Interest Rates The real risk-free rate is 4%. Inflation is expected to be 4% this year, 5% next year, and then 4.5% thereafter. The maturity risk premium is estimated to be 0.0006 × (t - 1), where t = number of years to maturity. What is the nominal interest rate on a 7-year Treasury security?
The nominal interest rate = 8.86%.
Explanation:
Average inflation premium = (4%+5%+4.5%+4.5%+4.5%+4.5%+4.5%)/7 = 31.5%/7 = 4.50%
Maturity risk premium for 7 year bond = 0.0006 * (7-1) = 0.36%
Nominal interest rate = real risk free rate + inflation premium + maturity risk premium = 4% + 4.50% + 0.36% = 8.86%.
Therefore, the nominal interest rate for the question given = 8.86%.
<u>Given:</u>
Annual demand = 410 units
Ordering cost = $41
Holding cost = $5 unit per year
<u>To find:</u>
Number of units to be ordered each time an order is placed
<u>Solution:</u>
On calculating the number of units,
Therefore, to minimize the total cost, approximately 77 units should be ordered each time an order is placed.
Women make up almost half of the total work force and earn 57 percent of Bachelor's degree, 60 percent of Master's degree and 73 percent control or influence on consumer decisions in American archipelago. However, less<span> than 3 percent of the executive jobs at Fortune 500 industries are held by women. This inequity doesn't just hurt women. They harm families, employers, and the United States' economy as well.</span>
<span> </span>
Answer:
A. $625,000
Explanation:
We know that,
Residual income = Average operating assets × (Return on investment - Minimum Required Rate of Return)
$50,000 = Average operating assets × (20% - 12%)
$50,000 = Average operating assets × 8%
So, the average operating assets would be
= $50,000 ÷ 8%
= $625,000
We simply apply the formula by considering all the items which are given in the question
Answer:fjdkndnfnf
Explanation:bfnfnndndnfnfnwd
