Find the amount-grow under each of these conditions

Assignment Help Financial Management
Reference no: EM131016202

Find the amount to which $725 will grow under each of these conditions:

A. 12% compounded semiannually for 5 years

B. 12% compounded quarterly for 5 years

C. 12% compounded monthly for 5 years

 

D. 12% compounded daily for 5 years

Reference no: EM131016202

Questions Cloud

Calculate the yield using a geometric average : Suppose 2-year Treasury bonds yield 5.9%, while 1-year bonds yield 6.8%. r* is 1.75%, and the maturity risk premium is zero. Using the expectations theory, What is the yield on a 1-year bond, one year from now? Calculate the yield using a geometric a..
Default risk premium-the real risk-free rate : Default Risk Premium The real risk-free rate, r*, is 2.25%. Inflation is expected to average 2.5% a year for the next 4 years, after which time inflation is expected to average 3.4% a year. Assume that there is no maturity risk premium. An 11-year co..
What is default risk premium on corporate bond : Default Risk Premium A Treasury bond that matures in 10 years has a yield of 5%. A 10-year corporate bond has a yield of 7.5%. Assume that the liquidity premium on the corporate bond is 0.35%. What is the default risk premium on the corporate bond?
What is present value of the annuity : A 14-ear annuity pay $2,800 per month, and payments are made at the end of each month. The interest rate is 12% compounded monthly for the first seven years, and 10% cmpounded monthly thereafter. What is the present value of the annuity?
Find the amount-grow under each of these conditions : Find the amount to which $725 will grow under each of these conditions:
Dividend discount model and the actual stock price : You’ve collected the following information from your favorite financial website. 52-Week Price Stock (Div) Div Yld % PE Ratio Close Price Net Chg Hi Lo 77.40 10.43 Palm Coal .36 2.6 6 13.90 –0.24 55.81 33.42 Lake Lead Grp 1.54 3.8 10 40.43 –0.01 130...
What is the credit rationing effect : What is the credit rationing effect? Is it more significant in private debt market or public debt market? What is the cause of this effect?
Calculate the cost of ending work in process : At the start of November, Penco Refinery had Work in Process inventory consisting of 4,700 units that were 80 percent complete with respect to materials and 60 percent complete with respect to conversion costs. Calculate the cost per equivalent unit ..
Diversification occurs when stocks with low correlations : Diversification occurs when stocks with low correlations of returns are placed together in a portfolio. Identify at least one type of firm that might exhibit low correlations of returns with the overall stock market? Explain why the correlations of t..

Reviews

Write a Review

Financial Management Questions & Answers

  Defined as the ability to consume goods or services

If market interest rates are currently 15% and your investment provides you this 15% return, does that imply that you are 15% more wealthy (after vs. before this investment return)? Assume wealth is defined as the ability to consume (purchase) goods ..

  What is the depreciation tax shield

Fill in the missing numbers in the following income statement: What is the depreciation tax shield?

  Identify one of the tax credits mentioned-current treatment

Identify one of the tax credits mentioned and discuss its current treatment. Then, argue whether or not it should be allowed as a credit. Also, answer each of the following questions regarding your selected tax credit: Do you feel that it favors one ..

  The following capital structure is taken from bata boots co

the following capital structure is taken from bata boots co. balance sheet for the fiscal year ended april 30 2005.

  Equilibrium with the required equal to the expected return

Simpkins Corporation does not pay any dividends because it is expanding rapidly and needs to retain all of its earnings. However, investors expect Simpkins to begin paying dividends, with the first dividend of $0.50coming 3 years from today. If the r..

  Explain capital asset pricing model

Security A has an expected rate of return of 6%, a standard deviation of returns of 30%, a correlation coefficient with the market of -0.25, and a beta coefficient of -0.5. Security B has an expected return of 11%

  Determine financial ratios-compare them to industry standard

Analyze Ford Motor Company’s balance sheet from its 2012 Annual Report. In your analysis, you must determine the financial ratios and compare them to industry standards.

  Realized return is known as holding period yield

The YTM on a bond is the interest rate you earn on your investment if interest rates don’t change. If you actually sell the bond before it matures, your realized return is known as the holding period yield (HPY).  Suppose that today you buy a bond wi..

  What is current TIE ratio

Alumbat Health has $800,000 of debt outstanding, and it pays an interest rate of 10 percent annually on its bank loan. Alumbat's total revenues are $3,200,000; its average tax rate is 40 percent; and its total margin is 6 percent. If the company does..

  Any required organizational change management strategies

write a draft of no more than 1800 words of the strategic plan for your organization including the

  Savings account that earns effective annual interest rate

You plan to invest $600 in your savings account this year and then you intend to increase the amount that you invest by 3% each year. If you invest in a savings account each that earns an effective annual interest rate of 7% how much money will you h..

  What is minimum yield expressed as nominal annual rate

A 1,000 par value 10-year bond with coupons at 4% convertible semiannually can be called on any coupon date starting at the end of year 6. The price of this bond is 900, and the bond is redeemed at par. What is the minimum yield expressed as a nomina..

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