If you show me the multiple choice fees i can help
The owner of the company ABC might need to raise a capital to fund a business expansion this is bc equity financing involves selling a portion of a company's equity in return for capital .
Answer: 16.2-15.8/0.6=0.6667. Use normalcdf() to find the percentage from -999 to 0.6777 which is 0.7476*625=467
Explanation:
<u>The equilibrium rate of return on a 1 year T-bond is 5%</u>
<u />
<h3>Equilibrium rate</h3>
This is the interest rate at which the demand meet the supply at a particular point.
<h3>Equilibrium rate of return</h3>
This is the sum of dividend yield plus the rate of capital gains.
we can also say that the equilibrium rate for a 1 year T-bond in this case is the sum of the real risk free rate and the expected inflation.
Data
- Real risk free rate = 3%
- Expected inflation = 2%
Hence, the equilibrium rate of return will be 3% + 2% = 5%.
From the above, the equilibrium rate of return is 5%
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