The real risk-free rate is 3.55%, inflation is expected to be 3.60% this year, and the maturity risk premium is zero. Taking account of the cross-product term, i.e., not ignoring it, what is the equilibrium rate of return on a 1-year Treasury bond? (Round your final answer to 3 decimal places.)
A. 8.224%
B. 7.059%
C. 6.914%
D. 7.278%
E. 8.442%
Answer: D
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Internal users of financial information:
A. Are those individuals involved in managing and operating the company. B. Include shareholders and lenders. C. Include directors and customers. D. Are not directly involved in operating a company. E. Include suppliers, regulators, and the press.
An ________ standard is based on 100% efficiency without any loss or waste.
What will be an ideal response?
Coomb's Fashions forecasts sales of $125,000 for the quarter ended December 31. Its gross profit rate is 20% of sales, and its September 30 inventory is $32,500. If the December 31 inventory is targeted at $41,500, budgeted purchases for this quarter should be:
A. $91,500. B. $91,000. C. $25,000. D. $134,000. E. $109,000.
Acme, Inc., produces widgets. To manufacture a new type of widget, it took 30 hours for the first widget. Acme estimates it has a 92% learning rate. Using the logarithmic approach, calculate the time it will take to manufacture the 26th widget.
a. 11.05 hours b. 21.90 hours c. 28.96 hours d. 20.28 hours