By the capitalization-of-cash flows method

Assignment Help Financial Management
Reference no: EM13829029

By the capitalization-of-cash flows method, the value of an asset is a function of

a. both the book value and the age of the asset

b. the risk of the asset's cash flows

c. the book value of the asset

d. the age of the asset

Reference no: EM13829029

Questions Cloud

Example of reimbursement-related contract : The U.S. government employs a large number of contractors throughout many different departments. Unfortunately, not all contractors are scrupulous when seeking reimbursement for costs incurred during their contract period. Research another example of..
What is the theoretical value of a right : The common stock of the Tangerine Tube Company is currently selling for $75 a share. Under the terms of a rights offering, the present stockholders will be able to purchase a share at $60 a share for each 5 shares of common held. What is the theoreti..
The return on a cash-and-carry gold is loaned : Suppose the gold spot price is $1700/oz, the 1-year forward price is 1760.54, and the continuously compounded risk-free rate is 4%. Calculate the following: the lease rate δ= 1T 1n F0,TS B. the return on a cash-and-carry if gold cannot be loaned C. t..
What the costs of the revco bankruptcy : Revco Drug Store filed for bankruptcy in July of 1988 and was one of the largest bankruptcies in US financial history as well as being one of the largest leveraged buyouts. what the costs of the Revco bankruptcy will be, and how long you expect befor..
By the capitalization-of-cash flows method : By the capitalization-of-cash flows method, the value of an asset is a function of
Approximate coupon rate on the outstanding bond : The current required rate of return on a bond issued by Who LTD is 11 percent. "Who" has a bond issue outstanding that pays interest semi annually, is selling for $845 and matures in 8 years. What is the approximate coupon rate on the outstanding bon..
What is the market value of a zero coupon bond : What is the market value of a zero coupon bond with 5 years to maturity? The bond was originally sold with a yield to maturity equal to 11 percent, but the market rate today is 9 percent.
What kind of compensation program : Bill Jobs has decided to start a computer company called CompU in Joplin. He knows that many MSSU students, who are now required to own and operate a personal computer, are having difficulty setting up their computers, If CompU is successful, what ki..
Beneficial for the buildings and non-current assets : The Board of Directors of BesTaste, a medium size company, wants catering business that has been growing over the past six years. The local authority has permission to extend its current premises. The company granted the business assets. Explain whic..

Reviews

Write a Review

Financial Management Questions & Answers

  Market is in equilibrium with the required return equal

A stock is trading at $70 per share. The stock is expected to have a year-end dividend of $3 per share (D1 = $3), and it is expected to grow at some constant rate g throughout time. The stock's required rate of return is 12% (assume the market is in ..

  Which of the options shown in the quote are in-the-money

What is the cost to purchase one October 17.50 call contract on Cisco stock? What is the time value per share of the November 15 call? Which of the options shown in the quote are in-the-money? Suppose you bought 10 Cisco Oct 20 put contracts. Just be..

  Assume that iwt has not yet made the distribution

Assume that iwt has not yet made the distribution. What is iwt's intrinsic value of equity? what is its intrinsic per share stock price?

  What are her monthly mortgage payments under both options

LaShon Vega is purchasing a $250,000 with a 20% down payment. Her lender offers her a 30-year fixed mortgage rate of 5.5% or an opportunity to pay two points to reduce that rate to 5.25%. What are her monthly mortgage payments under both options? Ass..

  Physical inventory-goods costing

Stallman Company took a physical inventory on December 31 and determined that goods costing $220,490 were on hand. Not included in the physical count were $29,100 of goods purchased from Pelzer Corporation, f.o.b. shipping point, and $26,200 of goods..

  Examine financial statements and budgets

Explain government financial reporting requirements Analyze financial statements and budgets to make appropriate administrative decisions and apply the budgets as a disciplinary process.

  Pro forma income statement for organization

Make a three year Pro Forma income statement for your organization (or product/service) and include information on your financial break-even point?

  What is the amount of the after-tax annual interest payment

The June Bug has a $16,000,000 bond issue outstanding. These bonds have a 7 percent coupon, pay interest semi annually in perpetuity, and have a current market price equal to 98.6 percent of face value. The tax rate is 39 percent. What is the amount ..

  Ordinary income and capital gains-initial investment

A corporation has decided to replace an existing asset with a newer model. Two years ago, the existing asset originally cost $30,000 and was being depreciated under MACRS using a five-year recovery period. The existing asset can be sold for $25,000.

  Cost be under each alternative if the exchange rate

If the DM/US$ exchange rate were 2.4DM/US$ in January 1986, what would be the all in cost of the aircraft purchase under each alternative? How much would the cost be under each alternative if the exchange rate were at 3.4DM/US$? Cover some or all of ..

  What home insurance coverage amount would you recommend

Michelle and Ken Dunn, both in their mid-20s, have been married for 4 years and have two preschool-age children. Ken has an accounting degree and is employed as a cost accountant at an annual salary of $62,000. They’re now renting a duplex but wish t..

  Calculate implied annual interest rate on futures contract

A Treasury bond futures contract settles at 105'8. What is the present value of the futures contract in dollars? Calculate the implied annual interest rate on the futures contract? Calculate the new value of the futures contract if interest rates inc..

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