How much must he deposits if the annual interest rate

Assignment Help Financial Management
Reference no: EM131070934

A man is planning to retire in 25 years. He wishes to deposit a regular amount every three months until he retires, so that, beginning one year following his retirement, he will receive annual payments of $80,000 for the next 15 years. How much must he deposits if the annual interest rate is 8% compounded quarterly? (Note that the last deposit is made on the date of the end of 25th year, and first withdrawal is at the end of 26th year.) (Justify Answer)

Reference no: EM131070934

What is the after tax cost of debt for the company

DR Choi issues a bond that pays 12% coupon rate. Suppose the price of the bond market value is 1020 and 8 years left until maturity. Given 32% of tax bracket what is the after

Strategic plan with cost estimates and time line

Develop a five-year strategic plan with cost estimates and a time line. It should be 5-7 double-spaced, typed (12 point) pages plus exhibits. Describe the situation facing Men

Opening the business as a sole proprietorship and franchise

Mark plans to open a barbeque restaurant. He can either open the business as a sole proprietorship or obtain a franchise for “Smokin’ Hot Bar-B-Q”. Compare and contrast the ad

Calculate the value of a preferred stock

(Preferred stock valuation) Calculate the value of a preferred stock that pays a dividend of $8.00 per share when the market's required yield on similar shares is 13 percent.

Existing shareholders as a fraction of the funds raised

The market value of the marketing research firm Fax Facts is $900 million. The firm issues an additional $150 million of stock, but as a result the stock price falls by 2%. Wh

Calculate cost of equity using dividend growth model method

Calculating the Cost of Equity-Laverne Industries stock has a beta of 1.35. The company just paid a dividend of $.85, and the dividends are expected to grow at 5 percent. The

What is the payoff from a call option on the cumulative

Weather derivatives are often written in terms of HDD and CDD, heating degree days and cooling degree days, where on a given day, HDD = max(0,65-A) CDD = max(0,A-65) A = avera

Depreciated on a straight-line basis over seven years

Sanders Enterprises, Inc., has been considering the purchase of a new manufacturing facility for $274,000. The facility is to be fully depreciated on a straight-line basis ove


Write a Review

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