What is the equivalent future value

Assignment Help Financial Management
Reference no: EM13883245

Compounding

What is the equivalent future value of $70,000 when compounded at 2.8% for 10 years?

You invest $50,000 in bonds that will give you a return of 5.6%. You intend to leave the funds invested until you retire in 35 years. How much money will you have from this investment?

Reference no: EM13883245

Questions Cloud

Small publicly traded commercial bakeries make : Sam wants to start a small commercial bakery to supply gourmet deserts to local restaurants. He believes that with his product line and his connections in the restaurant business, Sam figures that once the business matures, he and the investor should..
The analysis of proposed ambulatory surgery : Assume that your organization's chief financial officer (CFO) has just completed a presentation to the board of trustees concerning the analysis of a proposed ambulatory surgery center costing $2 million. During the presentation, the CFO indicated th..
Your investment is now worth : Two years ago, you invested $1,000 in a healthcare stock. Your return during the first year was -50 percent, while your return in the second year was +50 percent. Your investment is now worth $1,000.
Estimating the incremental cash flows : Which of the following is not a relevant cash flow when estimating the incremental cash flows for a new hospital service?
What is the equivalent future value : What is the equivalent future value of $70,000 when compounded at 2.8% for 10 years? You invest $50,000 in bonds that will give you a return of 5.6%. You intend to leave the funds invested until you retire in 35 years. How much money will you have fr..
Growth in the value of the shares and the dividend : What is the annual rate of return on an investment in a common stock that cost $40.50 if the current dividend is $1.50 and the growth in the value of the shares and the dividend is 8 percent?
Use of debt within the capital structure selected by a firm : Which one of the following is the risk arising from the use of debt within the capital structure selected by a firm?
Statements about opportunity costs is incorrect : Which of the following statements about opportunity costs is incorrect?
What will be total cost of payables in euros : On January 10, VW agrees to import auto parts worth $7 million from the US. The parts will be delivered on March 4 and are payable immediately in dollars. VW decides to hedge its dollar exposure by entering into CME futures contracts. If the hedged p..

Reviews

Write a Review

 

Financial Management Questions & Answers

  Considering a new three-year expansion project

Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $3 million. The fixed asset falls into the three-year MARCS class. The project is estimated to generate $2,180,000 in annual sales, ..

  Estimate of the companys cost of equity

Stock in Dragula Industries has a beta of 1.8. The market risk premium is 5 percent, and T-bills are currently yielding 4.80 percent. The company’s most recent dividend was $2.00 per share, and dividends are expected to grow at a 5.0 percent annual r..

  What was the investors geometric average return

An investor experienced returns of 8%, 6%, 4%, 10%, and -2% in five consecutive years. What was the investor's geometric average return over the five year period?

  Discount rate should you use to evaluate warehouse project

As a consultant to GBH skiwear, you have been ask to compute the appropriate discount rate to use in the evaluation of the purchase of a new warehouse facility. What discount rate should you use to evaluate the warehouse project?

  Fixed-rate mortgage-loan in form of single balloon payment

You need a 25-year, fixed-rate mortgage to buy a new home for $255,000. Your mortgage bank will lend you the money at a 5.5 percent APR for this 300-month loan. However, you can only afford monthly payments of $950, so you offer to pay off any remain..

  What is the annual percentage rate charged

Rory Riley is interested in buying a computer. At Radio Shack, she picks out a computer and a printer for a total cash price of $2,550. The salesperson informs her that if she qualifies for an instalment loan, she may pay 10% down and finance the pur..

  Stages of product life cycle aide in decision making process

A company invests in capital assets for a variety of reasons. Typically obsolescence, need for additional capacity and stages of a product life cycle aide in the decision making process for capital purchases. If a company has surplus cash or assets t..

  Prepare financial statements in proper form for sci

Prepare financial statements in proper form for SCI, including a non-consolidated statement of financial position, a statement of comprehensive income and a statement of changes in equity.

  How large per share common stock divedend

Figurate Industries has 750,000 shares of cumulative preferred stock outstanding. It has passed the last three quarterly dividends of $2.50 per share and now (at the end of the current quarter) wishes to distribute a total of $12 million to its share..

  What is the value of this forward contract

A LONG forward contract that was negotiated some time ago will expire in 2.5 years and has a delivery price of $60. The current stock price underlying this forward contract is $65. The risk-free rate with continuous compounding is 7% for all maturiti..

  Berta industries stock has a beta

Berta Industries stock has a beta of 1.30. The company just paid a dividend of $0.30, and the dividends are expected to grow at 4 percent. The expected return on the market is 13 percent, and Treasury bills are yielding 6.0 percent. The most recen..

  The p-e ratio remained unchanged

Kellogg Co. (K) recently earned a profit of $3.22 earnings per share and has a P/E ratio of 19.85. The dividend has been growing at a 4 percent rate over the past few years. If the growth rate continues, what would be the stock price in six years if ..

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