FIN 571 NERD Education Specialist /fin571nerd.com FIN 571 NERD Education Specialist /fin571nerd.com | Page 28

Data Corporation’s stock over the past five years: 17 percent, –15
percent, 19 percent, 29 percent, and 10 percent. Suppose the average
inflation rate over this period was 2.6 percent, and the average T-bill
rate over the period was 4.3 percent. a. What was the average real
return on the stock? (Do not round intermediate calculations and enter
your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b.
What was the average nominal risk premium on the stock? (Do not
round intermediate calculations and enter your answer as a percent
rounded to 1 decimal place, e.g., 32.1.)
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FIN 571 Week 1 DQ 1
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What is ethics? If you follow all applicable rules and regulations, are
you an ethical person?
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FIN 571 Week 1 DQ 2
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Assume that interest rates have increased substantially. Would this
tend to increase or decrease
the market value (meaning the price an investor in the firm's paper is
willing to pay) of a firm’s liabilities (relative to the book value of
liabilities)?
This question is referring to a firm's liability such as a bond or
debenture that has been issued in the markets. What happens to the
price an investor who is looking to purchase that bond or debenture is
willing to pay if the market interest rate increases above the rate that
the bond or debenture pays.
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FIN 571 Week 1 Financial Ratio Analysis