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ings Review View Help 9T Tell hat you want to do ses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing Integrative Problem In an effort to better understand how her investments are affected by market factors, Michelle Delatorre, the professional tennis player introduced in Integrative Problem 3-2 in Chapter 3, has posed some questions about yields and interest rates that she wants answered. Your boss at Balik and Kiefer has asked you to answer the following questions for Ms. Delatorre a. What is the difference between the dollar return and the percentage return, or yield, on an investment? Show how each return is computed Ms. Delatorre mentioned that she purchased a stock one year ago for $250 per share, and that the stock has a current market value equal to $240. She knows she received a dividend payment equal to $25, but she doesn't know what rate of return she earned on her investment. Help Ms. Delatorre by showing her how to compute the rate of return on her investment. What do you call the price that a borrower must pay for debt capital? What is the price of equity capital? What are the four fundamental factors that affect the cost of money, or the general level of interest rates, in the economy? b. c. d. What is the real risk- free rate of interest (r') and the nominal risk-free rate (rer)? How are these two rates measured

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