If All Interest Rates Decline 90 Basis Points (ΔR/(1

question 117

Multiple Choice

If all interest rates decline 90 basis points (ΔR/(1 + R) = −90 basis points) , what is the change in the market value of equity?

• A)-$4.4300 million
• B)+$3.9255 million
• C)+$4.3875 million
• D)+$2.5506 million
• E)+$0.0227 million
• [Refer to: 9-115]

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