1 suppose the real rate is 1 the risk-free rate is 4, Ask an Expert

Finance

1. Suppose the real rate is 1%, the risk-free rate is 4%, maturity risk premium is 2%, inflation premium is 3%, the default risk on similar debt is 3%, and the liquidity premium is 2%. What is the nominal interest rate on this venture’s debt capital?

A. 11% B. 12% C. 13% D. 14% E. 15%

2. Gisborne Company reported the following financial data: Sales = $400, Costs = $200, Taxes = $50, Net Income = $150, Total Assets = $1,200, Debt = $600, and Equity = $600, Accounts Payable and Accrued liabilities = $0. Assets and costs are proportional to sales. Debt is not. A dividend of $90 was paid, and Gisborne wishes to maintain a constant payout to net income. Next year's sales are projected to be $480. What are additional funds needed?

(a) $240 (b) $132 (c) $ 60 (d) $168 (e) None of the above.

View complete question

Financial Management, Finance

Category:- Financial Management
Reference No.:- M92712201

Have any Question?Write your Review or question?

Related Questions in Financial Management

Management control systems and national cultures and

Management Control Systems and National Cultures and Corporate Social Responsibility o What steps, if any, is Amazon taking to be sensitive to the national culture. o What is Amazon doing with regard to Corporate Social ...

Hospitality financial management hfm assignment - cvp

Hospitality Financial Management (HFM) Assignment - CVP Analysis You are assisting management consider different cost and pricing strategies. Consider the following data and report to management your findings. 1. The coc ...

Assignment the art of negotiationresearch a current

Assignment : The Art of Negotiation Research a current conflict or negotiation in progress from the last 6 months like peace talks in the Middle East, a corporate merger, a labor dispute, etc. Write a six to eight (6-8) ...

You have owned and operated a successful brick-and-mortar

You have owned and operated a successful brick-and-mortar business for several years. Due to increased competition from other retailers, you have decided to expand your operations to sell your products via the Internet. ...

Question - your chief financial officer cfo was unable to

Question - Your chief financial officer (CFO) was unable to attend the recent monthly chamber of commerce meeting. You learned from some other local CFOs that changing exchange rates had dramatically affected their firms ...

Assignment all assignments should be written in your own

Assignment All assignments should be written in your own words and provide examples and opinions beyond the textbook or any other source you get them from. I will be looking for more of your opinions and examples beyond ...

Assignment - evaluating sensitivity to riskyou may do this

Assignment - Evaluating sensitivity to risk You may do this case individually or with one other person. Select three companies from different industries. Each company must have stock prices continuously available for Mar ...

Test1 if a persons required return decreases for an

TEST 1) If a person's required return decreases for an increase in risk, that person is said to be risk-seeking. risk-indifferent. risk-adverse. risk-aware. 2) Last year Mike bought 100 shares of Dallas Corp. common stoc ...

Tax brackets and deductionsconduct online research for

Tax Brackets and Deductions Conduct online research for federal income tax brackets for the current year. Which tax bracket do you fit into for your gross household income? How close is your gross household income to the ...

Company overviewintroductory paragraph summarize the

Company Overview Introductory paragraph. Summarize the section in 1 - 2 paragraphs including the history, current market, and the overall image of the organization. History Current Market Include a brief 2 - 3 paragraph ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Financial Management Expert