Suppose that a risk-free investment will make three future payments of $500 in one year, $500 in two years, and $500 in three years.
instructions: round your answers to 2 decimal places.
a. if the federal reserve has set the risk-free interest rate at 12 percent, what is the proper current price of this investment?
$ 1,288.55
b. what is the price of this investment if the federal reserve raises the risk-free interest rate to 14 percent?

Molander corporation is a distributor of a sun umbrella used at resort hotels. data concerning the next month’s budget appear below: selling price per unit $ 29 variable expense per unit $ 14 fixed expense per month $ 12,450 unit sales per month 980 required: 1. what is the company’s margin of safety? (do not round intermediate calculations.) 2. what is the company’s margin of safety as a percentage of its sales? (round your percentage answer to 2 decimal places (i. e. 0.1234 should be entered as 12.

For many years, kellogg's frosted flakes, a ready-to-eat breakfast cereal, was perceived as a cereal for children. tony the tiger, a cartoon character, extolled frosted flakes, and advertisements depicted children enjoying the product with tony in competitive situations. recently, in response to declining sales of frosted flakes, the cereal maker has adopted a new series of advertisements that show adults admitting that they enjoy frosted flakes, too. kellogg's is attempting to

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