User Account

All Pages

Calculate the annual compound growth rate of the house

Assignment Help Corporate Finance
Reference no: EM13861936

The Hamptons Home of a Famed Socialite Hits the Market

"Before there was Paris Hilton, there was Consuelo Vanderbilt Balsan - a Gilded Age heiress and socialite, re-nowned for her beauty and wealth. Now Ms. Balsan's onetime Hamptons home is slated to hit the market priced at $28 million with Tim Davis of the Corcoran Group.

Located on Ox Pasture Road in Southampton, the shingle-style home was built around 1900 and is known as "Gardenside" or "Cara-Mia". Ms. Balsan, the great-granddaughter of railroad magnate Cornelius Vanderbilt, owned the house until her death in 1964.

According to public records, the estate is owned by Robert G. Goldstein, executive vice president and president of global gaming operations at Las Vegas Sands Corp, and his wife Sheryl, who purchased the house in 2007 for $17.4 million." (The Wall Street Journal, August 1, 2014, M2)

In your initial response to the topic you have to answer all 5 questions.

You are expected to make your own contribution in a main topic as well as respond with value added comments to at least two of your classmates as well as to your instructor.

1. Calculate the annual compound growth rate of the house price during the period when the house was owned by Robert G. Goldstein (since 2007). (Round the number of years to the whole number). Please show your work or describe how calculated (e.g., excel formula).

2. Assume that the growth rate you calculated in question #1 remains the same for the next 20 years. Calculate the price of the house in 20 years.Please show your work or describe how calculated (e.g., excel formula).

3. Assume the growth rate that you calculated in #1 prevailed since 1900. Calculate the price of the house in 1900.Please show your work or describe how calculated (e.g., excel formula).

4. Assume the growth rate that you calculated in #1 prevailed since 1900. Which price was paid for the house in 1964?Please show your work or describe how calculated (e.g., excel formula).

5. You were using the time value of money concept to answer the question #3. Think about the time line for that problem. What is the time point 0 in that problem? Please explain your answer.

Reference no: EM13861936

Questions Cloud

Manager for monopolistically competitive firm : You are a manager for monopolistically competitive firm. From experience, the profits maximizing level of output of your firm is 100 units. However, it is expected that prices of other close substitutes will fall in the near future. how should you ad..
Potential mid-term exam questions : Perfect competition, welfare and entry. A perfectly competitive market consists of 3 firms. Total cost functions for each firm are given by C = 2q + 0.25×(q)2 + 256. Market demand is given by QD  = 388 - 2P.
How does a funds flow statement differ from a balance sheet : What is a Balance Sheet? How does a Funds Flow Statement differ from a Balance Sheet ? Enumerate the items which are usually shown in a Balance Sheet and a Funds Flow Statement.
Solution to principal-agent problem ensures : The solution to principal-agent problem ensures that the firm is operating
Calculate the annual compound growth rate of the house : Calculate the annual compound growth rate of the house price
Demand-pull inflation occurs : Demand-pull inflation occurs when:
About perfect competition : Which of the following is true about perfect competition?
Economic context that preceded the great recession : Read the paper “The Great Depression, the New Deal and the Current Crisis” and answer the following questions: What were the similarities and difference in the economic context that preceded the Great Recession, as compared to the reasons that preced..
Design a program, in python, : Design a program, in python, that allows the user to enter 20 names into a string array. Sort the array in ascending (alphabetical) order and displays its contents.

Reviews

Write a Review

Corporate Finance Questions & Answers

  Explain a common investment fraud scheme

Explain and discuss a common investment fraud scheme and describe the controls that may be put in place to prevent the fraud.

  Multiple choice questions on market price and stocks1nbsp

multiple choice questions on market price and stocks.1.nbsp makeover inc. believes that at its current stock price of

  Standard normal curve

Which is larger, the area under the standard normal curve between -1 and 1 or between 0 and 2, and explain your reasoning?

  Xyz plc is a small organisation that specialises in

xyz plc is a small organisation that specialises in providing on-site cleaning services to both commercial and

  Select a corporation in the fortune 500 category refer to

select a corporation in the fortune 500 category. refer to the most recent financial statement report of the

  Explain how inflation affects the rate of return required

Explain how inflation affects the rate of return required on an investment project

  Find after tax cost of debt and cost of equity

Chatham Craft's capital structure consists of 30 million dollar of debt and 90 million dollar of equity. The Corporations's CFO has provided the following information: interest rate on debt is 8 percent.

  Compute the current price of the stock

Laser Optics will pay a common stock dividend of dollar 1.60 at the end of the year. The required rate of return on the common stock is 13 percent. The corporation has a constant growth rate of 7 percent.

  What is the internal rate of return

What is the internal rate of return of a project that costs $45000 if it is expected to generate $15047 per year for five years.

  Find the expected return on stock

Suppose the economy recovers next year, analysts expect Stock X return for year to be 20 percent, if the economy does not get better, analysts expect Stock X's return for the year to be -5 percent.

  Discuss approach to managing foreign risks

Please write about the international financial manager of Samsung. This is the individual who is in charge of international financial management at your corporation.

  A thirty- year u s treasury bond has a 40 percent interest

a thirty- year u. s. treasury bond has a 4.0 percent interest rate. in contrast a ten- year treasury bond has an

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd