Foreign risk and Business finance

The following are extracts from the statement of financial position of a company: $000 $000 Equity Ordinary shares 8,000 Reserves 20,000 –––––– 28,000 Non?current liabilities Bonds 4,000 Bank loans 6,200 Preference shares 2,000 –––––– 12,200 Current liabilities Overdraft 1,000 Trade payables 1,500 –––––– 2,500 –––––– Total equity and liabilities 42,700 –––––– The ordinary shares have a nominal value of 50 cents per share and are trading at $5.00 per share. The preference shares have a nominal value of $1.00 per share and are trading at 80 cents per share. The bonds have a nominal value of $100 and are trading at $105 per bond. What is the market value based gearing of the company, defined as prior charge capital / equity? A 15.0% B 13.0% C 11.8% D 7.3% In the denominator , the market value of equity is calculated as $8000* $5 * $2. I didn't understand why we multiply by 2. 2. Country X uses the dollar as its currency and country Y uses the dinar. Country X’s expected inflation rate is 5% per year, compared to 2% per year in country Y. Country Y’s nominal interest rate is 4% per year and the current spot exchange rate between the two countries is 1.5000 dinar per $1. According to the four?way equivalence model, which of the following statements is/are true? 1 Country X’s nominal interest rate should be 7.06% per year 2 The future (expected) spot rate after one year should be 1.4571 dinar per $1 3 Country X’s real interest rate should be higher than that of country Y A 1 only B 1 and 2 only C 2 and 3 only D 1, 2 and 3 I'm clear about the 2nd option. Could you explain how to calculate nominal rate and real interest rate...ie option A and option B. I don't get the calculation given in the kit.