# Question

Assume the expected inflation rate is 3.8 percent. If the current real rate of interest is 6.4 percent, what should the nominal rate of interest be?

## Answer to relevant Questions

What would you expect the nominal rate of interest to be if the real rate is 5 percent and the expected inflation rate is 3 percent?The common stock of NCP paid $1.32 in dividends last year. Dividends are expected to grow at an 8 percent annual rate for an indefinite number of years.a. If your required rate of return is 10.5 percent, what is the value of ...Using the P/E ratio approach to valuation, calculate the value of a share of stock under the following conditions:• The investor’s required rate of return is 12 percent,• The expected level of earnings at the end of ...Dowling Sportswear is considering building a new factory to produce aluminum baseball bats. This project would require an initial cash outlay of $5,000,000 and would generate annual net cash inflows of $1,000,000 per year ...Jella Cosmetics is considering a project that costs $800,000 and is expected to last for 10 years and produce future cash flows of $175,000 per year. If the appropriate discount rate for this project is 12 percent, what is ...Post your question

0