Subject: Financial strategy & policy Fill in the blanks in the following table: Nominal Interest Rate (%) Inflation Rate (%) Real Interest Rate (%) 6 1 - - 10 12 9 - 3
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Subject: Financial strategy & policy
Fill in the blanks in the following table:
| Nominal Interest Rate (%) | Inflation Rate (%) | Real Interest Rate (%) |
| 6 | 1 | - |
| - | 10 | 12 |
| 9 | - | 3 |
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- 5. Definitions: Pick 5 and define, describe why each matter, provide an example Define Describe why it matters Term Time value of money Passive income Net Worth Credit Score/Credit rating Risk Evaluation Stocks bonds Gross income v. Net income Mutual funds ETFs Index funds RRSP Consumer Debt OSAP Example(s)The nominal interest rate is adjusted based on _______ from the real interest rate. A. government controls B. inflation C. income growth D. exchange rate movementsThe discount rate used in a net present value analysis is the ________. A. rate of interest earned on a savings account B. rate of inflation C. rate of interest charged for debt financing of an investment D. required rate of return or the hurdle rate
- Which of the following instruments has the highest cost? Seleccione una: a. Fed Funds b. Commercial Paper c. Eurodollars d. Prime rateall of above QUESTION 2 Which of the followings is commonly used for debt ratings? return on net capital total debt to total capital O standard deviation of returns interest coverage ratio All of themThe bond prices and Interest question section (a-e). As well as Monetary Policy Action Question (a-e)
- Evaluate alternative financing plans Obj. 1 Based on the data in Exercise E8-1. discuss factors other than earnings per share that should be considered in evaluating such financing plans.Inflation targeting refers to conducting ________ policy so as to commit the central bank to achieving a ________. fiscal; publicly announced level of inflation fiscal; zero inflation rate monetary; publicly announced level of inflation monetary; zero inflation rateNominal values are measured in ________ and real values take account of ________. A. current prices; inflation B. banks; exchange rates C. inflation; current prices D. cash; utility
- Which one of the proportions of debt in the following chart is the optimal level? Firm Value Vu+ TD A B OD OC A B C -Vu + TD - Financial Distress Costs D Proportion of DebtIdentify under which one of the following market the issue of treasury bills lies: a.Equity Market b.Capital Market c.Foreign Currency Market d.Money Market **fast plzWhich of the following deals with instrument relating to long-term debt and equity? Select one: A. Foreign Exchange Market B. Money Market C. Capital Market D. Commodities Market
