Business, 08.04.2020 03:09 girlwonder326
Bell Computers is a computer hardware company with an equity beta of 1.5, whereas Macrosoft is a software company with an equity beta of 1.2. Assume that both firms are all-equity financed. Suppose that Macrosoft wants to invest in a project to build computer hardware, like Bell. What is the appropriate discount rate for this project? Assume that the CAPM holds. The risk-free rate is 1% and the market risk premium is 6%.
Answers: 3
Business, 22.06.2019 00:30
A) plot the m1 and m2 money stock in the us from 1990-2015. (hint: you may use the data tools provided by fred.) (b) plot the nominal interest rate from 1960 to 2014. (hint: you can either use the daily interest rates for selected u.s. treasury, private money market and capital market instruments from or the effective federal funds rate fromfred.) (c) the consumer price index (cpi) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. intuitively, the cpi represents the cost of living or the average price level. plot the cpi from 1960 to 2013.(d) the inflation rate is the yearly percentage change in the average price level. in practice, we usually use the percentage change in the cpi to compute the inflation rate. plot the inflation rate from 1960 to 2013.(e) explain the difference between the ex-ante and ex-post real interest rate. use the fisher equation to compute the ex-post real interest rate. plot the nominal interest rate and the ex-post real interest rate from 1960 to 2013 in the same graph.
Answers: 3
Business, 23.06.2019 01:00
What are the benefits of different types of career education, like community colleges, vocational training programs, and four-year colleges?
Answers: 3
Business, 23.06.2019 02:00
When making a major purchase, i often spend months to learn all the issues?
Answers: 3
Business, 23.06.2019 07:50
Discuss the positive and negative effects of the north american free trade agreement on the united states. support your conclusions with examples and evidence from the lesson.
Answers: 2
Bell Computers is a computer hardware company with an equity beta of 1.5, whereas Macrosoft is a sof...
Mathematics, 12.08.2020 08:01
Computers and Technology, 12.08.2020 08:01
Computers and Technology, 12.08.2020 08:01
Mathematics, 12.08.2020 08:01
Mathematics, 12.08.2020 08:01