Answered: 3. BC Limited has a nominal cost of…

3. BC Limited has a nominal cost of capital of 12.65% per annum. The real interest rate is 8.0% per annum. What is the inflation rate? A 5.45% B 7.0% C 6.0% D 9.45%

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

3. BC Limited has a nominal cost of capital of 12.65% per annum. The real interest rate is 8.0% per
annum. What is the inflation rate?
A 5.45%
B 7.0%
C 6.0%
D 9.45%

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