What was the real return on the investment

Assignment Help Finance Basics
Reference no: EM132265953

An investment had a nominal return of 9.5 percent last year. The inflation rate was 2.3 percent. What was the real return on the investment?

Reference no: EM132265953

Questions Cloud

What fraction of the payment made at the end : What fraction of the payment made at the end of the second year will represent repayment of principal?
Evaluate the trading conditions in Italy and Sweden : The purpose of this exercise is to assess your aptitudes in each domain. You will evaluate the trading conditions in these countries (Italy and Sweden)
How the film shows time differently than the short story : Choose a scene from the film that addresses the passage of time, a state of consciousness, or a moment of memory/regret.
What is the clean price of the bond : The par value is $1,000. What is the clean price of the bond
What was the real return on the investment : An investment had a nominal return of 9.5 percent last year. The inflation rate was 2.3 percent. What was the real return on the investment?
What is the stock price today : What is the stock price today if the required return is 10.3 percent?
What stock price would you consider appropriate : Sankey Co. has earnings per share of $4.35. The benchmark PE is 19.6 times. What stock price would you consider appropriate?
What is the bond coupon rate : The bond has a par value of $1,000 and a yield to maturity of 6.69 percent. What is the bond's coupon rate?
Assume semiannual compounding : The bonds will have a YTM of 5.01 percent and mature in 25 years. If we assume semiannual compounding, at what price will the bonds sell?

Reviews

Write a Review

Finance Basics Questions & Answers

  Difference between the following pairs of control goals

What are the three generic control goals of the operations process and the five generic control goals of the related information process?

  Minimize the resulting recessionary gaps

In the face of global oil price shocks, what could monetary policymakers do to minimize the resulting recessionary gaps?

  Compute the expected recovery given in the first scenario

Compute the expected recovery, given the first scenario. Compute the expected recovery, given the second scenario. Compute the expected recovery. Graph the information in a tree diagram.

  What is jack weighted average cost of capital

The U.S. Treasury bill is yielding 4 percent and the market risk premium is 7 percent. Jack's tax rate is 35 percent. What is Jack's weighted average cost of capital?

  Computation of roi

A corporation decides to buy new equipment for $10,000 with an expected useful life of four years. At the end of each of the four years, the cash flow from this equipment is expected to be $4000.

  Calculate the tax disadvantage to organization

Then recalculate the tax disadvantage using the same income but with the maximum tax rates that existed before 2003. These rates were 35% (Tcg=.15) on corporate profits and 38.6 % (Tp=.386) on personal investment income.

  How does the use of financial leverage effect a firms

the effect of leverage on firm earnings a firm needs 100 to start and has the following expectations

  What is the cost of equity

If you know that the after-tax cost of debt is 6%, what is the cost of equity?

  Calculation of bond price and yield to maturity

Calculation of Bond price and yield to maturity and what are the bond's price and YTM

  By using the raos information determine the total amount of

raj and kavitha rao are a married couple in their early 20s living in denver. raj earned 53000 in 2011 from his job as

  Standard deck of playing cards

Two cards are dealt off the top of a well-shuffled, standard deck of playing cards. You have a choice:

  Use ratio analysis and common size analysis

Use ratio analysis, common size analysis, or other techniques to determine areas in which the company is doing well and areas that management should look at.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd