If the nominal interest rate per year is 10 and the, Risk Management

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If the nominal interest rate per year is 10 and the

1. Which one of the following tends to make CBCF greater than ACF?

A. Selling common stock

B. Depreciaiton

C. Increasing debt

D. Interest expense

2. If the nominal interest rate per year is 10% and the inflation rate is 5.67%, what is the real rate of interest?

A.10.0%

B. 4.1%

C. 14.0%

D. 5.77%

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