### What is the fair value of these cash flows today

Assignment Help Financial Management
##### Reference no: EM131027105

1. Your friend just bought a new car for \$30,298. You expect that the value of the car will decline by 6 percent every year. What will be the value of the car in 8 years?

2. Starting at the end of year 2, and every even-numbered year thereafter (i.e., year 4, 6, 8, ... etc.), you expect to receive \$656. You will receive a total of 16 payments. What is the fair value of these cash flows today, if the going rate is 6 percent per year?

#### Makes minimum monthly payment and makes no other charges

Paying off credit cards Simon recently received a credit card with an 13% nominal interest rate. With the card, he purchased an Apple iPhone 5 for \$400. The minimum payment on

#### Constant growth valuation-required rate of return on stock

Thomas Brothers is expected to pay a \$2.4 per share dividend at the end of the year (that is, D1 = \$2.4). The dividend is expected to grow at a constant rate of 4% a year. The

#### Explain process for calculating beta and the inputs

As of early September 2010, Wal-Mart's (WMT) beta is 0.33 and Target Stores (TGT) beta is 1.02. Discuss the meaning of these two betas, analytically, by briefly setting fort

#### The betas and weightings of individual securities

Calculate portfolio beta (β) given the betas and weightings of individual securities. Calculate expected return, E(r), for a stock using the CAPM formula. Calculate portfolio

#### Discuss the motivations behind the unethical behavior

UBS and Morgan Stanley: An Elaborate Insider Trading Scheme. After reading the case discuss the motivations behind the unethical behavior, who was hurt by the unethical behavi

#### What is the percentage change in the price of these bonds

Laurel, Inc., and Hardy Corp. both have 6 percent coupon bonds outstanding, with semiannual interest payments, and both are priced at par value. The Laurel, Inc., bond has two

#### Improving the organizations financial position

Identify at least three objectives for improving the organization's financial position and show how they relate to the mission, vision, and strategy of the organization.

#### Replaced at the end of its life with an equivalent machine

EAC Approach You are considering the purchase of one of two machines used in your manufacturing plant. Machine A has a life of two years, costs \$80 initially, and then \$125 pe