What was the capital gain of tips in dollars

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Reference no: EM131985226

1. TIPS Capital Return Consider a 2.50% TIPS with an issue CPI reference of 185.20. At the beginning of this year, the CPI was 197.40 and was at 202.50 at the end of the year. What was the capital gain of the TIPS in dollars? (Round your answer to 2 decimal places.)

$5.10

$27.54

$17.30

$12.20

2. Amazon Inc. (AMZN) has 55 percent equity-to-asset ratio. The average yield to maturityon AMZN's bonds is 3.2. perent; assume a tax rate of 30 percent. The firms estimated required rate of return on equity is estimated at about 10.8 percent. WHat Amazons weighted average cost of capital (WACC) (round to the nearest tenth of a percent)

A. 6.6 percent

B. 7.3 percent

C. 6.1 percent

D. 6.9 percent

Reference no: EM131985226

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