User Account

All Pages

Determining the present value

Assignment Help Finance Basics
Reference no: EM131076397

(Present value)

Ronen Consulting has just realized an accounting error that has resulted in an unfunded liability of $380,000 due in 28 years. In other words, they will need $380,000 in 28 years. Toni Flanders, the company's CEO, is scrambling to discount the liability to the present to assist in valuing the firm's stock. If the appropriate discount rate is 9 percent, what is the present value of the liability?

Reference no: EM131076397

Questions Cloud

Write an inorder traversal algorithm for this array-based : Depict the array in an array-based implementation for the binary search tree in Figure 15-14 a of Chapter 15 . Assume that tree items are strings.
Npv-pi and irr calculations : Fijisawa, Inc. is considering a major expansion of its product line and has estimated the following cash flows associated with such an expansion. The initial outlay would be $1,960,000, and the project would generate cash flows of $380,000 per yea..
What is the capitalized cost of the marina if interest rate : An investor is considering the construction of a new marina on the Detroit river at a cost of $68m. M&O costs will average $80,000 per year for the first five years, and rise to $100,000 per year thereafter. A major overhaul costing $12m will be requ..
Weibull distribution with parameters : Let X denote the lifetime of a component, with f (x) and F(x) the pdf and cdf of X. The probability that the component fails in the interval (x, x + ?x) is approximately f(x) ? ?x.
Determining the present value : Ronen Consulting has just realized an accounting error that has resulted in an unfunded liability of $380,000 due in 28 years. In other words, they will need $380,000 in 28 years.
Identify a nursing informatics role : Identify a nursing informatics role that is of particular interest to you. Conduct further research to find out how this specific role might contribute to patient safety, quality of care, nurse efficiency, the implementation of new informatics ini..
Which investment horizon would you earn annualized gain : Assume you invest your money is a portfolio of stocks known as the S&P 500 (i.e. a portfolio of 500 stocks).  Based on historical performance, in which investment horizon would you earn the largest annualized gain (i.e. percentage gain per year or ye..
Firm cost of capital for the preferred stock : The preferred stock of Walter Industries Inc. currently sells for $36.02 a share and pays $2.48 in dividends annually. What is the firm's cost of capital for the preferred stock?
Why does this not contradict rolle theorem : Let f(x) = |x|. Show that f(-1) = f(1), but there does not exist any c ∈ (-1, 1) such that f is differentiable at c and f'(c) = 0. Why does this not contradict Rolle's Theorem

Reviews

Write a Review

Finance Basics Questions & Answers

  What is highest rate you can afford on a 78-month apr loan

You want to borrow $61,000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $1,000, but no more. Assuming monthly compounding, what is the highest rate you can afford on a 78-month APR loan?

  Forecast horizon of five years

Using the residual income model, prepare a valuation of the common stock of Welmark Corporation as of Year 3 under the following assumptions: a. Forecast horizon of five years. b. Sales growth of 10.65% per year over the forecast horizon and 3.5% t..

  Computing the average inventory days outstanding

Compute average inventory days outstanding for both years and interpret any change. What does this ratio mean? Is the year-over-year change good news? Why?

  What is the maximum capital budget

If the firm follows the residual dividend policy, what is the maximum capital budget that is consistent with maintaining the target capital structure?

  Find the duration, modified duration, and convexity of bond

Below are details of a semiannual bond. Please show work in Excel spreadsheet. Par value = 1000; Maturity 4 years; Market rate if interest (yield to Maturity) = 11% per annum; Coupon rate = 8% per year paid semiannually.

  The question is how should this communication be carried

the question is how should this communication be carried out to be sure that it is reaching all of the

  Key data about the proposed projects

Any unused portion of this budget will earn less than its 20 percent cost of capital. A summary of key data about the proposed projects follows.

  You own a share portfolio invested 25 in shares of q 20 in

you own a share portfolio invested 25 in shares of q 20 in shares in r 45 in shares in s and 10 in shares in t. the

  Finding stock values for real stocks

As you continue your discussions on Finding Stock Values for Real Stocks Using Beta and the SML, please use the betas of some of the stocks provided and see if you can estimate the slope of the SML. Excel may be useful in doing so.

  Calculate the companys after-tax weighted-average cost of

orange technology solutions is considering expansion of its existing operation by assessing three different projects.

  Explains the surprising statistic stated above

All sages provide both wisdom and inspiration. Since Dasha's speech contained wisdom and greatly inspired her audience, Dasha is a sage.

  Byron inc has total current assets of 800000 long-term

byron inc. has total current assets of 800000 long-term debt of 200000 total current liabilities of 450000 and

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