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 |
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| 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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