Question
1.Suppose the nominal rate is 15.62% and the inflation rate is 2.37%. What is the real rate? Use the Fisher Equation to get the answer.Note:
1.Suppose the nominal rate is 15.62% and the inflation rate is 2.37%. What is the real rate? Use the Fisher Equation to get the answer.Note: Convert your answer to percentage and round off to two decimal points. Do not enter % in the answer box.
2.ABC, Inc., has a beta of 1.19. The risk-free rate is 2.91% and the market risk premium is 7.89%. What is the required rate of return on ABC's stock?Note: Convert your answer to percentage and round off to two decimal points.
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Financial Analysis With Microsoft Excel 2016
Authors: Timothy R. Mayes, Todd M. Shank
8th Edition
1337298042, 9781337298049
