Nonintegrated air carriers do not supply door-to-door service

Indicate whether the statement is true or false


True

Business

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You are planning to buy a stock, the risk on which is dependent on two factors: (1) the change over the last year in the inflation rate and (2) the spread between ten-year Treasury bonds and three-month Treasury bills.  Suppose the average risk-free interest rate is 1 percent. The beta coefficients of the stock associated with the change in inflation rate and spread between ten-year Treasury bonds and three-month Treasury bills are -2 and 5 respectively. If you expect the inflation rate to rise 1 percentage point and you think the spread will be 3 percentage points. What is the expected return to this stock? Use the arbitrage-pricing theory.

A. 11 percent B. 12 percent C. 14 percent D. 18 percent

Business

Chicago Co is interested in purchasing a machine that would improve its operational efficiency. The cost is $200,000 with an estimated residual value of $20,000 and a useful life of eight years. Cash inflows are expected to increase by $40,000 a year. The company's minimum rate of return is 10 percent. The present value of $1 for eight years at 10 percent is 0.467, and the present value of an

annuity of $1 at 10 percent and eight years is 5.335. The net present value of the project is a. $74,520. b. $120,100. c. $93,400. d. $22,740.

Business

ThanhPD - Tesst

Content Test

Business

Putting yourself in the receiver's shoes to better adapt your message to that person's needs is called ____________________

Fill in the blank(s) with correct word

Business