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A bank quotes you an APR of 20%, with weekly compounding, on your credit card. What is the EAR? Assume that there are 52 weeks in a year.

b. Last year, you earned a nominal return of 28% on your investments. The inflation rate was 10%. What was your real rate of return?

c. XYZs net income is 80M, depreciation is 30M, and interest payments are 25M. The corporate tax rate is T = 20%. There are no changes in net working capital, capital expenditures, or any other cash-flow relevant items.

i. Compute XYZs EBITDA.

ii. Compute XYZs EBIT.

iii. Compute XYZs unlevered net income. iv. (5 points) Compute XYZs unlevered cash flow. Use both methods to account for depreciation and show that you get the same unlevered cash flow.