User Account

All Pages

Determining the constant annual rate

Assignment Help Macroeconomics
Reference no: EM131246615

A firm's current profits are $900,000. These profits are expected to grow indefinitely at a constant annual rate of 2 percent. If the firm's opportunity cost of funds is 4 percent, determine the value of the firm:

Instructions: Show your work and Round your responses to 2 decimal places.

a.) the instant before it pays out current profits as dividends.

b.) the instant after it pays out current profits as dividends.

Reference no: EM131246615

Questions Cloud

Macroeconomic accounts for three countries : The following table provides some hypothetical data on macroeconomic accounts for three countries represented by A, B, and C and measured in billions of currency units. In the table, private household saving is SH, tax revenue is T, government spe..
How does disruptive change affect an organization : What is "disruptive change," and how is this different from "incremental change?" How does disruptive change affect an organization
What is your set of possible alternatives : Draw a decision tree and assign payoffs to the terminal nodes associated with the possible alternatives. What would you choose?
Write a scope document for nibco : Is "big bang" the right approach for NIBCO? What are the problems with proceeding with other types of implementation? Write a scope document for NIBCO
Determining the constant annual rate : A firm's current profits are $900,000. These profits are expected to grow indefinitely at a constant annual rate of 2 percent. If the firm's opportunity cost of funds is 4 percent, determine the value of the firm:
How are the people involved accomplishing their goal : Eyewitness and participant accounts are a critical element of any news story. Identify three possible participants or eyewitnesses and develop two questions to ask each person. One eyewitness should be an actual historical figure. Create answers t..
Give an economic interpretation of the slope coefficient : a. Give an economic interpretation of the slope coefficient. b. What price would it have to charge to sell 1,500 sweatshirts? c. Calculate the price elasticity of demand between the price range of $5 and $7.
Should any person drink more than one 1-liter bottle of wine : Alcohol Consumption: Recall the example in which you needed to choose how much to drink.
Identify desirable improvements : What name is given to the process by which a company analyzes another company's product to identify desirable improvements in its own product?

Reviews

Write a Review

Macroeconomics Questions & Answers

  Which management function is harold performing

Harold is a no-nonsense boss who believes that the best way for an organization to achieve its goals is for workers to follow their boss's orders. Thus, he tells workers exactly what to do and how to do it. When Harold tells workers exactly.

  Computing economic cost

What is your economic cost of buying a ticket? What is your economic cost of attending the game (once you already bought the ticket)?

  Calculate the excess supply or demand for bp

What would be the clearing price for BP in the foreign exchange market - what would happen if both the US and the British governments fixed the price of BP at $1.45? Excess supply of BP / Excess demand for BP

  Elucidate what financial impact each of those expenses

Elucidate what financial impact each of those expenses has had on the companies margins

  Value of certain amounts of gold

What do you refer to a monetary system in which paper money and coins had the value of certain amounts of gold?

  Ellucidate explain the broad decline in house prices

Ellucidate explain the broad decline in house prices that occurred in those years. Is the market currently in equilibrium.

  Explain complexities that would arise under new scenarios

Assume that Microsoft is considering a merger. The possible merger faces some threats and that the industry desides on self-expansion as an alternative strategy, describe the additional complexities that would arise under this new scenario of expa..

  A monetary policy that tries to minimize fluctuations in

A monetary policy that tries to minimize fluctuations in interest rates leads to a pro-cyclical monetary policy, thereby increasing the amplitude of the business cycle.

  How many athletes are required to eliminate the deficit

Suppose the academy agrees explain how many athletes are required to eliminate the deficit.

  How much profit is the monopolist making

What is the monopolist's profit maximizing price c) What is the profit maximizing quantity for this monopolist d) How much profit is the monopolist making e) Suppose the market is no longer depicted by a monopoly, but has become perfectly competiti..

  Does this mean that future long term rates should go up

Under the expectations hypothesis, if long-term yields are higher than short term yields, does this mean that future long term rates should go up, down, or stay the same?

  Extensive form of game and identify nash equilibrium

Time Magazine and Newsweek are two competing news magazines. Suppose that each company charges the same $5.00 price for their magazines. What is the Nash equilibrium for this sequential game?

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