Answer:
11%
Explanation:
Nominal interest rate = real interest rate + inflation rate
6% + 5% = 11%
Anticipated Inflation rate is the rate at which it is expected that price levels would rise.
Real interest rate is the rate of interest that has been adjusted for the effects of inflation.
I hope my answer helps you
Answer:
The Option C is correct because the return desired on an investment is always sum of two things, return on default risk and return for inflation compensation.
Desired return = Return on Default risk %age + Inflation compensation %age
So what we earn in real terms is return on defaul risk. The return in nominal term (also known as money terms) is always higher in percentage because the percentage also includes the inflation compensation.
Answer:
correct option is C : $3,971
Explanation:
given data
salvage value = $10,000
time = 12 year
rate = 8 %
to find out
what is the present value of the equipment's salvage value
solution
we get here present value of the equipment salvage value that is express as
present value of the equipment = $10000 × Present value of discounting factor
put here value we get
=
=
= 3971
so correct option is C : $3,971
Answer:
D0 1.50
D1 1.60
D2 1.78
D3 1.94
D4 2.12
D5 2.31
Price of the stock after 5-year $ 77
PV $ 81.75
Explanation:
Earning per share 2.5
Dividend per share 1.5
grow ratio 9%
P/E ratio 24
within 5 year is expected to fall to 20
We solve for the dividend by multiplying the dividends by the grow rate of 9%
We solve for the earning after 5 years:
Principal 2.50
time 5.00
rate 0.09000
Amount 3.85
Then we multiply by 20 to get the value of the stock:
$ 3.85 x 20 = $ 77
We solve the horizon value:
PV $ 81.75
Answer:
E. Adherence to universal ethical norms always takes precedence over local ethical norms.
Explanation: Adherence to universal or "first-order" ethical norms should always take precedence over local or "second-order" norms. In instances involving universally applicable ethical norms (like paying bribes), there can be no compromise on what is ethically permissible and what is not.