Assessing the value of the firm stock

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Question: Your credit card company charges you 1.03 percent per month. What is the annual percentage rate on your account?

1. What is the future value of $1,200 a year for 5 years at a 7 percent rate of interest?

2. What is the future value of $800 in 18 years assuming an interest rate of 7 percent compounded semiannually?

If you put up $29,000 today in exchange for a 8.75 percent, 15-year annuity, what will the annual cash flow be?

Imprudential, Inc., has an unfunded pension liability of $600 million that must be paid in 23 years. To assess the value of the firm's stock, financial analysts want to discount this liability back to the present. If the relevant discount rate is 6.5 percent, what is the present value of this liability.

Reference no: EM131796138

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Assessing the value of the firm stock : Imprudential, Inc., has an unfunded pension liability of $600 million that must be paid in 23 years. To assess the value of the firm's stock.
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