You want to invest in a riskless project in sweden. the project has an initial cost of skr3.86 million and is expected to produce cash inflows of skrl.76 million a year for three years. the project will be worthless after three years. the expected inflation rate in sweden is 3.2 percent while it is 2.8 percent in the u. s. a risk-free security is paying 4.1 percent in the u. s. the current spot rate is $1 = skr7.7274. what is the net present value of this project in swedish krona if the international fisher effect applies?

a. skr1, 087, 561
b. skr958, 029
c. skr701, 458
d. skr823, 333
e. skr978, 177

The typical consumer's food basket in the base year 2015 is as follows: 30 chickens at $4 each 10 hams at $5 each 10 steaks at $8 each a chicken feed shortage causes the price of chickens to rise to $5.00 each in the year 2016. hams rise to $7.00 each, and the price of steaks is unchanged. a. calculate the change in the "cost-of-eating" index between 2015 and 2016. year cost of the basket 2015 $ 2016 $ instructions: enter your responses rounded to one decimal place. the official cost-of-eating index has by %. b. suppose that consumers are completely indifferent between two chickens and one ham. for this example, how large is the substitution bias in the official "cost-of-eating" index? the in the cost-of-eating index is %. the of inflation in the cost of eating reflects substitution bias.

What does the phrase limited liability mean in a corporate context?

Granby foods' (gf) balance sheet shows a total of $25 million long-term debt with a coupon rate of 8.50%. the yield to maturity on this debt is 8.00%, and the debt has a total current market value of $27 million. the company has 10 million shares of stock, and the stock has a book value per share of $5.00. the current stock price is $20.00 per share, and stockholders' required rate of return, r s, is 12.25%. the company recently decided that its target capital structure should have 35% debt, with the balance being common equity. the tax rate is 40%. calculate waccs based on book, market, and target capital structures. what is the sum of these three waccs?