Question
The PVAF (present value annuity factor) is: A) it is always at time zero B) {[(1+(r/m) mt 1]/(r/m)} C) (1 + r/m) n=m*t D) 1
The PVAF (present value annuity factor) is:
|
| A) it is always at time zero |
|
| B) {[(1+(r/m)mt 1]/(r/m)} |
|
| C) (1 + r/m)n=m*t |
|
| D) 1 / (1 + r/m)n=m*t |
|
| E) {[1 -1/(1+r/m)mt]/(r/m)} |
If the US T-Bill rate is 1.7%, the US expected inflation rate is 0.6%, the real rate of interest for Brazil is 2.2%, the default risk premium for Amazon is 0.9%, the maturity premium for Amazon debt is 1.2%, and the liquidity premium is 0.4%, then what is the expected interest rate (cost of capital) Amazon will have to pay to borrow?
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Financial Accounting
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel
10th edition
978-1119305736
