The fourth period the asset disappears

Assignment Help Finance Basics
Reference no: EM13281530

You own an asset. Each period it has a 15 percent chance of disappearing with no return to you. In the first period, if the asset survives, you will be paid 4. In the second period, if the asset survives, you will be paid 6. In the third period, if the asset survives, you will be paid 9. In the fourth period, if the asset survives, you will be 10. the fourth period the asset disappears. The interest rate between periods is 0 percent. How much is your asset worth today ?

Reference no: EM13281530

Questions Cloud

Estimate the coefficient of kinetic friction : In a friction experiment, your wooden plank is horizontal. When a mass of 100 grams is hanging on the weight hanger of mass 50 grams, what is the coefficient of kinetic friction
State the physical and chemical properties of the substances : If a reaction between Zn and I2 takes place, are the physical and chemical properties of the substances isolated during and after mixing the same as or different from those of Iodine and Zinc? Explain using the reaction as an example.
Difference between epoxy grout-cement grout : What is the difference between epoxy grout, cement grout and cement mortar?
Calculate the resistivity at room temperature : an N-type silicon substrate with doping density of 1015 cm-3 Arsenic is to be converted in tp p-type by Boron diffusion so the resistivity at T=75C is 5Ω-cm all atoms are fully ionized
The fourth period the asset disappears : In the fourth period, if the asset survives, you will be 10. the fourth period the asset disappears. The interest rate between periods is 0 percent. How much is your asset worth today ?
What is the terminal speed of the marble : A boy on board a cruise ship drops a 30.0 g marble into the ocean. what is the terminal speed of the marble
Statement is correct as regard to up milling : Which of the following statement is correct as regard to up milling?
State and explain the net ionic equation : write the net ionic equation, excess concentrated sulfuric acid is added to solid calcium phosphate
Find what is the resistnace between the two faces : A large brass washer has a 2 cm inside diameter, a 5 cm outside diameter, and is 0.5 cm thick. Its conductivity is s=1.5 X 107 S/m. The washer is cut in half along a diameter, and a voltage is applied between the two rectangular faces of one part.

Reviews

Write a Review

Finance Basics Questions & Answers

  Describe the characteristics of each investment.

Describe the characteristics of each investment.

  Determine market price of the stock

Executive Chalk is financed solely by common stock and has outstanding twenty-five million shares with a market price of $10 a share. It now declared that it intends to issue $160 million of debt and to use the proceeds to buy back common stock.

  Determine using the internal rates of return criterion

Determine using the internal rates of return criterion with an incremental analysis which will offer the largest monetary benefit to AWS if their MARR is 12%.

  What are the portfolio weights for a portfolio

What are the portfolio weights for a portfolio that has 205 shares of Stock A that sell for $98 per share and 180 shares of Stock B that sell for $138 per share? (Round your answers to 4 decimal places (e.g., 32.1616).)

  Valuing stocks-paying dividends good for shareholders

Increasing growth may require investment from firm and money spent on investment can't be employed to pay dividends. On one hand, cutting the firm's dividend to raise investment will raise the stock price if and only if the new investment has the ..

  Calculate the expected yield on a three year note

Using the Pure Expectations Theory with no maturity risk, calculate the expected yield on a three year note for two years from now. Please show all work and explain.

  What relationship between value of annuity and interest rate

What happens to the value of your investment if the interest rates suddenly drop to 5%? - What if the interest rates suddenly rise to 15%.

  Determine monthly payment

The Zambrano family purchased a house for $91,000. They paid $20,000 down and took out a thirty year mortgage for the balance at 9 percent.

  Objective type questions on portfolio management

Objective type questions on portfolio Management and What is the best estimate of the current stock

  What is the incremental savings of buying the valves

However, the space occupied by the production of the valve can be used by another production group that is currently leasing space for $55,000 per year. What is the incremental savings of buying the valves?

  What should be price of the firm''s stock according to ggm

Suppose that the risk free rate is 5%, the expected market return is 10%, the beta of firm XYZ is 2, the current dividend that XYZ has just paid is 1 and dividends are expected to grow at a rate of 10% per year. What should be the price of the fir..

  Vulnerability characteristics

Choose assumptions that absolutely must remain valid. That is, if these assumptions don't hold true, international strategy success is in immediate danger.

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