This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Optimal capital structure, or debt capacity, is the debt-equity mix that minimizes the cost of the ... (Read 309 times)

s.tung

  • Hero Member
  • *****
  • Posts: 577
on: Jul 11, 2018
Optimal capital structure, or debt capacity, is the debt-equity mix that minimizes the cost of the firm's debt.
 
  Indicate whether the statement is true or false

Question 2

Given the anticipated rate of inflation (i) of 1.7 and the real rate of interest (R) of 1.4, find the nominal rate of
  interest (r).
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

poopface

  • Sr. Member
  • ****
  • Posts: 339
Reply #1 on: Jul 11, 2018
Answer to Question 1

FALSE

Answer to Question 2

r = R + i + Ri
r = .014 + .017 + (.014 )(.017 )
r = .031 + .000238 = .031238
r = 3.12


s.tung

  • Member
  • Posts: 577
Reply 2 on: Jul 11, 2018
Wow, this really help

jomama

  • Member
  • Posts: 346
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

Bacteria have been found alive in a lake buried one half mile under ice in Antarctica.

Did you know?

Blood in the urine can be a sign of a kidney stone, glomerulonephritis, or other kidney problems.

Did you know?

Looking at the sun may not only cause headache and distort your vision temporarily, but it can also cause permanent eye damage. Any exposure to sunlight adds to the cumulative effects of ultraviolet (UV) radiation on your eyes. UV exposure has been linked to eye disorders such as macular degeneration, solar retinitis, and corneal dystrophies.

Did you know?

The Food and Drug Administration has approved Risperdal, an adult antipsychotic drug, for the symptomatic treatment of irritability in children and adolescents with autism. The approval is the first for the use of a drug to treat behaviors associated with autism in children. These behaviors are included under the general heading of irritability and include aggression, deliberate self-injury, and temper tantrums.

Did you know?

A serious new warning has been established for pregnant women against taking ACE inhibitors during pregnancy. In the study, the risk of major birth defects in children whose mothers took ACE inhibitors during the first trimester was nearly three times higher than in children whose mothers didn't take ACE inhibitors. Physicians can prescribe alternative medications for pregnant women who have symptoms of high blood pressure.

Providing structure and organization in the child’s environment may aid the development of ... Providing structure and organization in the child’s environment may aid the development of ...
Muscle structure seen at the EM level Muscle structure seen at the EM level
The structure of the potassium channel pore The structure of the potassium channel pore
Structure of a Lymph Node Structure of a Lymph Node
The nucleolus (arrow) is a prominent structure in the nucleus The nucleolus (arrow) is a prominent structure in the nucleus
Chloroplast structure and function Chloroplast structure and function
Video: Egg and Sperm Formations in Animals Animation

For a complete list of videos, visit our video library