What are these payments worth to you right now

Assignment Help Financial Management
Reference no: EM131015996

Your parents promise to give you $83 a month for 4 years, starting at the end of this month, to help you out. At a 8.15 percent APR discount rate, what are these payments worth to you right now?

Reference no: EM131015996

Questions Cloud

Tuition financing plan-date of original enrollment : Wayne State offers a tuition financing plan where a $40,000 loan taken at the beginning of the freshman year would pay for all 4 years of college tuition. The plan calls for the loan to be repaid over a ten year period starting 5 years from the date ..
What is the current risk-free rate : Polly Khan is trying to calculate the risk-free rate given the following information: The current market rate of interest is 8%. Investor’s have been requiring a 10% annual return on Builtrite’s stock which has a beta of 1.5. What is the current risk..
What is dollar allocation to patient services department : What is the dollar allocation to each patient services department if patient services revenue is used as the cost driver? What is the dollar allocation to each patient services department if hours of housekeeping support are used as the cost driver? ..
Briefly discuss conceptual merits of using market rate : On January 1, 2015, RA Company issued for $537,616 its 20-year, 13% bonds that have a maturity value of $500,000 and pay interest semiannually on January 1 and July 1. Briefly discuss the conceptual merits of using the market rate as opposed to the c..
What are these payments worth to you right now : Your parents promise to give you $83 a month for 4 years, starting at the end of this month, to help you out. At a 8.15 percent APR discount rate, what are these payments worth to you right now?
Maximization different from stock price maximization : How is profit maximization different from stock price maximization? Under what conditions might profit maximization not lead to stock price maximization?
Using horizontal analysis-comparative reports : In using horizontal analysis, comparative reports are:
Debt service reserve fund maintained : Huntley Hospital must maintain $3.3 million in a debt service reserve fund maintained by the board of trustees. The board members would like to count this balance when determining the amount of cash that they should carry for meeting normal transacti..
Decided to use the money for college education : Adam Marcs, who graduated from high school last year and could not go to college for lack of funds, has just inherited $60,000 dollars from a distant relative. If we assume that Adam can earn 6% per year on his investments and savings, how much shoul..

Reviews

Write a Review

Financial Management Questions & Answers

  What can we do to build good credit scores

What can we do to build good credit scores? In the long term and in the very short term? What does not work? What happens when one can’t pay one’s debt? What are the basics of bankruptcy proceedings?

  Voting rights to management group running general electric

Jacques Smith holds 1,000 shares of General Electric’s (GE) common stock. The annual stockholder meeting is being held soon, but as a minor shareholder, Jacques doesn’t plan to attend. Jacques did not sell his shares but gave his voting rights to the..

  Xplain why the operation of revenue management systems

Once an airline publishes its schedule, the short run marginal cost of an additional passenger is very low. Explain why the operation of revenue management systems may set some ticket prices below that needed to cover fully-allocated cost.

  Presence of marketing synergies will produce

Nora Fashion Corp. is thinking to acquire Sally Shoes Corp. The presence of marketing synergies will produce an estimated additional value of $9,259,259. The gain from the synergies will be shared equally between the shareholders of two companies. Ho..

  What is the bonds yield-to-maturity

Suppose that you have a Zero-Coupon bond currently trading for $985, the bond has a face value of $1,000, and a time to maturity of 76 days (out of a 365 days year). What is the bond's yield-to-maturity?

  Compute the weighted average cost of capital of the firm

IBM expects to pay a dividend of $4 next year and expects these dividends to grow at 7% a year. The price of IBM is $90 per share. Your estimate of the market risk premium is 6%. The risk-free rate of return is 5% and IBM has a beta of 1.2.What is IB..

  What is the current value of operations-terminal value

Corporate Valuation Ishita Corp has never paid a dividend. Free cash flow is projected to follow the timeline below. After the third year, FCF is expected to grow at 8% annually. The WACC is 13%. $M Year 1 2 3 -10 20 80 What is Ishita's Terminal Valu..

  Closest approximation to real-risk-free rate of interest

The closest approximation to the real, risk-free rate of interest is

  About ratio analysis and present value of an annuity

While cash flow is more often used in financial analysis, which of the following is not a reason to require firms to still report accounting profit? Which of the following is not true about ratio analysis? Which of the following will increase the pre..

  Discuss in detail both the pros and cons of this strategy

In early 2014, the U.S. Government had more than $17 trillion in debt (approximately $55,000 for every citizen in the US) outstanding in the form of Treasury bills, notes, and bonds. From time to time, the US Treasury changes the mix of securities th..

  Both stocks have the same reward-to-risk ratio

Stock A has an expected return of 12% and a beta of 1.2. Stock B has an expected return of 9% and a beta of 0.8. Both stocks have the same reward-to-risk ratio. What is the risk-free rate?

  Sell for at the end of an investors three year horizon

Stock has a current price of 40.00, a beta of 1.5, and a dividend yield of 8%. if the treasury bill yield is 6% and the market portfolio is expected to return 19%, what should stock A sell for at the end of an investor's three year horizon?

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