Calculate the value of perpetuity

Assignment Help Finance Basics
Reference no: EM1312398

Calculate the value of perpetuity

Find the value of the financial instrument, a perpetuity that pays $15 per year forever; the discount rate is 10%, using excel functions.

With Same amount of money what rate compounded semi-annually equate when the same amount compound at quarterly rate of 5.5%

You have $10,000 to invest. The Big Federal Bank offers one-year certificates of deposit with a stated rate of 5.50% compounded quarterly. What rate, compounded semi-annually, would provide you with the same amount of money at the end of one year?

Reference no: EM1312398

Questions Cloud

Compute the interest rate on the loan lent compare the bank : Compute the interest rate on the loan lent compare the Bank deposit the interest earned and Calculate the interest rate earned on the savings account for six months
Basics of epideomology and biostatistics : Explain the epidemiological attributes of this episode. In which special circumstances can cross-sectional surveys be utilized to test the hypotheses? In your answer explain briefly the characteristics of the cross-sectional study.
Explain why each of these stakeholder groups needs skill : Briefly explain why each of these stakeholder groups needs skill in financial statement analysis and Trent's income statements for 2006 and 2007
Appropriate set of hypotheses : What is the appropriate set of hypotheses to test such that a possible outcome of the test would indicate;
Calculate the value of perpetuity : Calculate the value of perpetuity and With Same amount of money what rate compounded semi-annually equate when the same amount compound at quarterly rate of 5.5%
Computing standard deviation for drinking regular coffee : Suppose population standard deviation for those drinking regular coffee is 1.20 cups per day and 1.36 cups per day for those drinking decaffeinated coffee.
Impact of transactions involving operating assets : Identify the cash flows operating , financing , investing Non cash items - Impact of Transactions Involving Operating Assets on Statement of Cash Flows
Capitalize or revenue recognize the expenditure : Capitalize or Revenue recognize the expenditure on Acquisition cost - The equipment has an estimated life of five years and an estimated residual value of $6,000.
Calculating the suitable mean response time : Calculate the suitable mean response time from both proposed locations and find out which proposed site must be selected for the new emergency facility.

Reviews

Write a Review

 

Finance Basics Questions & Answers

  Calculate dahl''s 20x6 consolidated net income

Calculate Dahl's 20X6 consolidated net income and identify the amount attributable to Dahl's shareholders and to the non-controlling interest.  Be sure to show all your calculations.  You are not required to prepare a consolidated income statement.

  What effect does rising risk have on value of the asset

All else being the same, what effect does rising risk have on value of the asset. Describe in light of your findings in part a.

  Creating balance sheet using mark-to-market method

Applying the Mark-to-market method, what will Novi Company show on its balance sheet at the end of 2006 to reflect its investment in Troy Company?

  Objective type questions on financial decisions

Objective type questions on financial decisions and The investment opportunity scheduled combined with the weighted marginal costs of capital indicates

  Computation of dividend paid on common stock

Computation of Dividend paid on common stock under non-cumulative & cumulative schemes. Compute the dividends paid to each class of stock in each of those years assuming the preferred stock is non-cumulative. Use the matrix format listed be..

  Computing bond-s value

By previous agreement company will omit the coupon interest payments in years 8, 9, and 10. These payments will be repaid, without interest, at maturity. Compute the bond's value?

  Computation of the preference dividend before declaring

Computation of the Preference dividend before declaring the common dividend and What is the minimum amount the firm must pay per share to its preferred stockholders

  Computing the number of shares to be issued to public

Computing the number of shares to be issued to public for capital requirements and How many new shares must the company sell to net $50 million

  Calculating real rate using nominal rate and inflation rate

Assume nominal rate is 14.62% and inflation rate is 5.49%. Solve for the real rate.

  Computing price of at-the-money european put on futures

An at-the-money European call on the futures sells for= $5.50. Determine the price of at-the-money European put on the futures? Suppose both the call and put have the same maturity.

  Computation of npv and sensitivity analysis

Computation of NPV and sensitivity Analysis and What other factors should be taken into account before Mississippi Delta Inc

  Computation of after-tax cost of debt

Computation of after-tax cost of debt is planning to place privately with a large insurance company

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