Question
Need HELP weather is A B C or D thanks... 1) Assume the spot rate on the Canadian dollar is C$1.0926. The risk-free nominal rate
Need HELP weather is A B C or D thanks... 1) Assume the spot rate on the Canadian dollar is C$1.0926. The risk-free nominal rate in the U.S. is 3.8 percent while it is 4.1 percent in Canada. Which one of the following four-year forward rates best establishes the approximate interest rate parity condition? |
C$1.1058 |
C$1.0519 |
C$1.1012 |
C$1.0795 |
|
2) D. L. Tuckers has $48,000 of debt outstanding that is selling at par and has a coupon rate of 6.75 percent. The tax rate is 35 percent. What is the present value of the tax shield? |
$1,134 |
$3,240 |
|
$16,800 |
$2,106
|
3) Chelsea Fashions is expected to pay an annual dividend of $1.10 a share next year. The market price of the stock is $21.80 and the growth rate is 4.5 percent. What is the firm's cost of equity? |
|
7.91 percent |
10.54 percent |
9.55percet |
9.24 percent |
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