1. A firm's balance sheet shows a total common equity of $2,500. The stock is selling for $26 per share and the firm has 365 shares outstanding. What is the Market value of the firm?.
2. The real risk free rate is 2%. The inflation premium for the next three years is 3.7%. The maturity risk premium for three year bonds is 1.3%. Liquidity premium is 3% and default risk premium is 3.0%.
What is the nominal rate on a three year Treasury Bond?