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 325 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
Excellent

milbourne11

  • Member
  • Posts: 322
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

The first war in which wide-scale use of anesthetics occurred was the Civil War, and 80% of all wounds were in the extremities.

Did you know?

In the United States, an estimated 50 million unnecessary antibiotics are prescribed for viral respiratory infections.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates’s recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

Though Candida and Aspergillus species are the most common fungal pathogens causing invasive fungal disease in the immunocompromised, infections due to previously uncommon hyaline and dematiaceous filamentous fungi are occurring more often today. Rare fungal infections, once accurately diagnosed, may require surgical debridement, immunotherapy, and newer antifungals used singly or in combination with older antifungals, on a case-by-case basis.

Did you know?

The lipid bilayer is made of phospholipids. They are arranged in a double layer because one of their ends is attracted to water while the other is repelled by water.

Structure of Taste Receptors Structure of Taste Receptors
Freud’s Conception on the Structure of the Mind Freud’s Conception on the Structure of the Mind
Chemical structure of DNA. Chemical structure of DNA.
The structure of bacteriophage T4 The structure of bacteriophage T4
Antibody structure. Antibody structure.
Video: Segmentation and migrating motility complexes & Gastroileal reflex

For a complete list of videos, visit our video library