Your investments increased in value by 15.6 percent last year but your purchasing power increased by...
Your investments increased in value by 15.6 percent last year but your purchasing power increased by only 11.3 percent. What was the approximate inflation rate? (Enter your answer as a percent rounded to 1 decimal place. Omit the "%" sign in your response.)
Homework Answers
approximate inflation rate=nominal rate-real rate
=(15.6-11.3)
which is equal to
=4.3
Add Answer to:
Your investments increased in value by 15.6 percent last year
but your purchasing power increased by...
You observe that the inflation rate in the United States is 1.9 percent per year and...
You observe that the inflation rate in the United States is 1.9
percent per year and that T-bills currently yield 2.4 percent
annually. Use the approximate international Fisher effect to answer
the following questions.
a.
What do you estimate the inflation rate to be in Australia, if
short-term Australian government securities yield 4 percent per
year? (Enter your answer as a percent rounded to 1 decimal
place, e.g., 32.1.)
b.
What do you estimate the inflation rate to be in...
Johnson Products earned $5.20 per share last year and paid a $2.15 per share dividend. If ROE was 16 percent, w...
Johnson Products earned $5.20 per share last year and paid a $2.15 per share dividend. If ROE was 16 percent, what is the sustainable growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) Sustainable growth rate %
b. If the inflation rate is 4.8% per year, what will be the change in the...
b. If the inflation rate is 4.8% per year, what
will be the change in the purchasing power of your money over this
period? (Use the Rule of 72 to compute the number of years.
Do not round intermediate calculations. Enter your answer as a
percent rounded to 2 decimal places.)
b. If the inflation rate is 4.8% per year, what will be the change in the purchasing power of your money over this period? (Use the Rule of 72...
You observe that the inflation rate in the United States is 2.0 percent per year and...
You observe that the inflation rate in the United States is 2.0 percent per year and that T-bills currently yield 2.5 percent annually. a. What do you estimate the inflation rate to be in Australia, if short-term Australian government securities yield 5 percent per year? (Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) Inflation rate % b. What do you estimate the inflation rate to be...
You observe that the inflation rate in the United States is 1.6 percent per year and...
You observe that the inflation rate in the United States is 1.6 percent per year and that T-bills currently yield 2.1 percent annually. a. What do you estimate the inflation rate to be in Australia, if short-term Australian government securities yield 5 percent per year? (Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) Inflation rate % b. What do you estimate the inflation rate to be...
Last year Lakesha’s Lounge Furniture Corporation had an ROE of 15.6 percent and a dividend payout...
Last year Lakesha’s Lounge Furniture Corporation had an ROE of 15.6 percent and a dividend payout ratio of 30 percent. What is the sustainable growth rate? What is the sustainable growth rate? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Last year, you earned a rate of return of 6.42 percent on your bond investments. During...
Last year, you earned a rate of return of 6.42 percent on your bond investments. During that time, the inflation rate was 1.6 percent. What was your real rate of return? 4.74 percent 4.83 percent 4.80 percent 4.71 percent 4.69 percent
At an inflation rate of 9 percent, the purchasing power of $1 would be cut in...
At an inflation rate of 9 percent, the purchasing power of $1 would be cut in half in 8.04 years. How long to the nearest year would it take the purchasing power of $1 to be cut in half if the inflation rate were only 4 percent? a. 12 years b. 15 years c. 18 years d. 20 years e. 23 years Show work.
Suppose you buy a 7.6 percent coupon bond today for $1,070. The bond has 12 years...
Suppose you buy a 7.6 percent coupon bond today for $1,070. The bond has 12 years to maturity. a. What rate of return do you expect to earn on your investment? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) Rate of return % b. Two years from now, the YTM on your bond has increased by 2 percent, and you decide to...
Suppose you bought 500 shares of stock at an initial price of $44 per share. The...
Suppose you bought 500 shares of stock at an initial price of $44 per share. The stock paid a dividend of $.42 per share during the following year, and the share price at the end of the year was $45. a. What is the capital gains yield? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) Capital gains yield % b. What is the dividend yield?...
You observe that the inflation rate in the United States is 1.9
percent per year and that T-bills currently yield 2.4 percent
annually. Use the approximate international Fisher effect to answer
the following questions.
a.
What do you estimate the inflation rate to be in Australia, if
short-term Australian government securities yield 4 percent per
year? (Enter your answer as a percent rounded to 1 decimal
place, e.g., 32.1.)
b.
What do you estimate the inflation rate to be in...
b. If the inflation rate is 4.8% per year, what
will be the change in the purchasing power of your money over this
period? (Use the Rule of 72 to compute the number of years.
Do not round intermediate calculations. Enter your answer as a
percent rounded to 2 decimal places.)
b. If the inflation rate is 4.8% per year, what will be the change in the purchasing power of your money over this period? (Use the Rule of 72...
Last year, you earned a rate of return of 6.42 percent on your bond investments. During that time, the inflation rate was 1.6 percent. What was your real rate of return? 4.74 percent 4.83 percent 4.80 percent 4.71 percent 4.69 percent
Most questions answered within 3 hours.
-
For a 2-Level design, with 8 factors, a recommended screening
design model is:
a. Taguchi L12...
asked 4 minutes ago -
If domestic savings are insufficient to finance domestic private
investment and exports are greater than imports,...
asked 10 minutes ago -
Q.4.
Use the format in Exhibit 9-1 to compute the ending LIFO
inventory and cost of...
asked 16 minutes ago -
Discuss the different receiving and dispatch equipment required
for uploading and loading different types of material...
asked 20 minutes ago -
Which of the following is true for simultaneous testing?
a. Net specificity is greater than the...
asked 24 minutes ago -
Discuss the importance of homologous recombination and
transposition in natural horizontal gene transfer and evolution. Be...
asked 28 minutes ago -
Brittle material has the properties Sut = 30 kpsi and Suc = 90
kpsi. Using the...
asked 27 minutes ago -
*
write about Plastic recycling statistics ( Plastic recycling rate )
last two years , i...
asked 26 minutes ago -
The activation energy for a given reaction is 50.3 kJ/mol. If
the rate constant for the...
asked 1 hour ago -
An entomologist discovers a dung beetle rolling a ball of dung
along the ground, and decides...
asked 3 hours ago -
Humans have used horses for transportation for millions of
years. Therefore, they will use horses for...
asked 4 hours ago -
The following are the Jensen Corporation's unit costs of making
and selling an item at a...
asked 5 hours ago