Calculate the present value of the series of cash flows

Assignment Help Financial Management
Reference no: EM131014890

1) Calculate the present value today of a $4,450 cash flow expected to be received exactly 9 years from today if the required rate of return on this cash flow is 8% per year.

a) $2,226.11

b) $8,895.70

c) $1,246

d) $4,120.37

2) Calculate the present value of the following series of cash flows if the applicable rate is 7%: $450 today, $960 one year from today, $820 two years from today.

a) $2,230.00

b) $1,928.43

c) $2,362.41

d) $2,063.42

Please show with work

Reference no: EM131014890

Questions Cloud

Issue perpetual preferred stock : Cost of Preferred Stock Tunney Industries can issue perpetual preferred stock at a price of $61.50 a share. The stock would pay a constant annual dividend of $5.50 a share. What is the company's cost of preferred stock, rp? Round your answer to two d..
What investment income should big report : What investment income should Big report for 20X1?$9,000$19,800$17,000$21,000
What is the partial derivative of the given function : The Redlich-Kwong equation provides an approximate model for the behavior of real gases. Find the partial derivative of the function with respect to each variable.
What is the percent value of these cash flows : Huggins Co. has identified an investment project with the following cash flows. If the discount rate is 10 %, what is the percent value of these cash flows? What is the present value at 18 percent? at 24 percent?
Calculate the present value of the series of cash flows : Calculate the present value today of a $4,450 cash flow expected to be received exactly 9 years from today if the required rate of return on this cash flow is 8% per year. Calculate the present value of the following series of cash flows if the appli..
Determine the estimated gain-bandwidth product : Determine the open-loop gain AVOL in VAI and in dB - Determine the estimated gain-bandwidth product - Find the maximum output voltage Vomax. This is the value at which OH enters its triode region of operation.
After-tax cost of debt-outstanding bonds : After-tax Cost of Debt The Heuser Company's currently outstanding bonds have a 9% coupon and a 12% yield to maturity. Heuser believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 35%, wha..
What is the stocks current value per share : Constant growth valuation Thomas Brothers is expected to pay a $3.1 per share dividend at the end of the year (that is, D1 = $3.1). The dividend is expected to grow at a constant rate of 8% a year. The required rate of return on the stock, rs, is 20%..
Federal district court in the united states : Three seamen who were injured while working for UASC brought suit against it in federal district court in the United States. UASC maintains it enjoys sovereign immunity. The seamen claim it is a commercial enter- prise and not entitled to immunity..

Reviews

Write a Review

Financial Management Questions & Answers

  Interest of coupons over two-year investment horizon

Suppose you bought an A-rated, 20-year maturity, 8% coupon bond with face value of $1,000 and semi-annual coupon payments. Suppose that immediately after you bought the bond the yield on such bonds decreased from 10% to 9% and remains at 9% until you..

  Under typical circumstances the cost of debt

Under typical circumstances the cost of debt is lower than the cost of equity. List two reason why. Do not use flotation costs and taxes on dividends as reasons.

  What is the estimate of the current stock price

Stock Y issued a dividend of $2.00 today which is expected to grow at 4% for the next 5 years and then grow at a constant rate of 2% after that. The required return is 10%. Using DDM what is the estimate of the current stock price?

  Loan agreement has payments and inputs

A 100,000 loan agreement has payments and inputs as follows. Calculate the XNPV, XIRR, NPV and IRR of the resulting cash flows

  Beneficial for the buildings and non-current assets

The Board of Directors of BesTaste, a medium size company, wants catering business that has been growing over the past six years. The local authority has permission to extend its current premises. The company granted the business assets. Explain whic..

  Estimate the unlevered beta of the firm

Chrysler, the automotive manufacturer, had a beta of 1.05 in 1995. It had $13 billion in debt outstanding in that year and 355 million shares trading at $50 per share. The firm had a cash balance of $8 billion at the end of 1995. The marginal tax rat..

  Compounding factors-discounting factors and financial risk

Most of us intuitively understand that a dollar required today does not have the same value as a dollar needed (or utilized) in the future. This is due to several factors including interest rates, compounding factors, discounting factors and financia..

  How long will it take to double your money

Time for a lump sum to double If you deposit money today in an account that pays 14% annual interest, how long will it take to double your money? Round your answer to two decimal places. How many years?

  Texas chemicals is a major producer of oil-based fertilisers

Texas Chemicals is a major producer of oil-based fertilisers in the US. The company’s stock is currently selling for $80 per share and there are 10 million shares outstanding. The company also has debt outstanding with a market value of $400 million...

  What day does the stock begin trading ex dividend

Dividend Payment: Kathy Snow wishes to purchase shares of Countdown Computers, Inc. The company’s Board of Directors has declared a cash dividend of $0.80 tobe paid to holders of record on Wednesday, May 12. What is the last day that Kathy can purcha..

  What is the expected return of this preferred stock

ZZZ-Best, Inc. recently issued $65.00 par-value preferred stock that pays an annual dividend of $17.00. If the stock is currently selling for $76.00, what is the expected return of this preferred stock?

  Debt-equity ratio be if firm wishes to keep ratios constant

A firm wishes to maintain a growth rate of 8 percent and a dividend payout ratio of 62 percent. The ratio of total assets to sales is constant at 1, and the profit margin is 10 percent. What must the debt-equity ratio be if the firm wishes to keep th..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd