Decrease the present value of an annuity

Assignment Help Financial Management
Reference no: EM131571120

Which of the following will decrease the present value of an annuity?

The discount rate increases.

The discount rate decreases.

The number of periods the annuity is received increases.

The final payment increases.

Reference no: EM131571120

Questions Cloud

What is the present value of the coupon stream : What is the present value of the coupon stream? What is the present value of the face value?
What is the arbitrage profit per dollar used : Suppose the Japanese yen exchange rate is ¥83 = $1, What is the cross-rate in terms of yen per pound? What is the arbitrage profit per dollar used?
What is the difference in annual inflation rates : What is the difference in the annual inflation rates for the United States and Poland over this period?
Two firms can both obtain cheaper financing using swap : Fixed-rate funding at 4% and floating rate at Libor-1%. Show how these two firms can both obtain cheaper financing using a swap.
Decrease the present value of an annuity : Which of the following will decrease the present value of an annuity?
Calculate vintage return on equity : The total assets to equity ratio for the firm is 2.7. Calculate Vintage’s return on equity.
When is historical data not useful : When is historical data not useful?
What interest payments do bondholders receive each year : What interest payments do bondholders receive each year? What will happen to the bond price if the yield to maturity falls to 6%?
How a pro forma financial statement : Which of the following is not how a pro forma financial statement is used? non-cash expense representing the cost of assets as they lose value over time.

Reviews

Write a Review

Financial Management Questions & Answers

  What is market rate of return on this stock

What is the market rate of return on this stock?

  Deposits are classified as transaction deposits

Suppose the reserve requirement for transaction deposits is 10% and it is 5% for nontransaction deposits. What is the total reserve requirement, in millions, for a bank with total deposits equal to $500 million, if $100 million of these deposits are ..

  How has the balance of trade changed over the past ten years

Use this website to assess recent trends in exporting and importing by UK firms. How has the balance of trade changed over the past ten years?

  What is the return on investment

Jane Lee opens a brokerage account, and purchases 300 shares of ABC at $40 per share. She borrows $4000 from her broker to help pay for the purchase. a. What is the margin on Jane’s account when she first purchases the stock? b. If the share price fa..

  What is the forward rate

Suppose the spot rates for 1 and 2 years are s1=6.3% and s2=6.9% with annual compounding.- What is the forward rate, f1,2 assuming annual compounding?

  Annual salary growth rate and annual portfolio growth rate

What recommendations do you have for employees with a current profile similar to Tom’s after seeing the impact of the uncertainty in the annual salary growth rate and the annual portfolio growth rate? Discuss how the financial planning model develope..

  Calculate gain or loss on disposal

Calculate gain or loss on disposal. Gain should be entered as a positive number.

  Stock portfolio invested-what is the portfolio beta

You own a stock portfolio invested 35 percent in Stock Q, 30 percent in Stock R, 20 percent in Stock S, and 15 percent in Stock T. The betas for these four stocks are .79, 1.17, 1.18, and 1.35, respectively. What is the portfolio beta?

  What is the present value of four annual payments

What is the present value of 4 annual payments of $300 each with the first payment being received immediately? Assume you can invest money at a 10% stated rate with semiannual compounding.

  Identify whether you should reduce variable or fixed costs

Discuss the Treatment of Normal and Abnormal Spoilage under Job Costing. Identify whether you should reduce variable or fixed costs.

  How much of this judgment would the insurance cover

Becky Fenton has 70/140/80 automobile insurance coverage. If two other people are awarded $115,000 each for injuries in an auto accident in which Becky was judged at fault, how much of this judgment would the insurance cover?

  Which will be depreciated straight-line to zero book value

Gooleys Lunch Wagons Inc. is considering project with initial fixed asset cost of $2.46 million which will be depreciated straight-line to zero book value.

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