Suppose that the nominal risk-free rate of return in the U.S is 9% and inflation is expected to be at 8%. In Australia the nominal interest rate is 16%. What is the expected rate of inflation in Australia if the Fisher Effect holds?

If the levered firm has $3000000 in debt and a tax rate of 40%, what is the value of the levered firm if its value on an unlevered basis is $5000000 and the PV of bankruptcy costs is $190000?