Find the future value and present value

Assignment Help Financial Management
Reference no: EM131016176

1. Find the future value of today's $500 in 5 years under each of the following conditions.

a. 5% nominal rate,annual compounding

b. 8% nominal rate, annual compounding

c.10% nominal rate, annual compounding

2. Find the present value of today's $10,000 in 5 years under each of the following conditions.

a. 6% nominal rate, annual compounding

b. 10% nominal rate, annual compounding

c. 12% nominal rate, annual compounding

Reference no: EM131016176

Questions Cloud

The firms market and book values per share differ : Bauer Software's current balance sheet shows total common equity of $5,125,000. The company has 530,000 shares of stock outstanding, and they sell at a price of $27.50 per share. By how much do the firm's market and book values per share differ?
Federal-plus-state income tax rate : Rao Construction recently reported $20.50 million of sales, $12.60 million of operating costs other than depreciation, and $3.00 million of depreciation. It had $8.50 million of bonds outstanding that carry a 7.0% interest rate, and its federal-plus-..
What type of marketing approach is your partner advocating : When you. Initially roll out your new product, your partner feels you should set high prices based on the unique qualities of the product what type of marketing approach is your partner advocating?
Accounting for bonus-vacation pay and holiday pay : The factory for the week is $200,000, consisting of $140,000 earned by 100 direct laborers and $60,000 earned by 30 indirect laborers. The total of the factory bonuses to be received at year-end is estimated at $400,000. Prepare the entry to distribu..
Find the future value and present value : Find the future value of today's $500 in 5 years under each of the following conditions. Find the present value of today's $10,000 in 5 years under each of the following conditions.
Total fixed costs and total variable costs : A small college has space for a maximum of 1,000 students. The college can identify 500 of its students who are willing to pay $20,000 per year and 500 students who are willing to pay $10,000 per year. To continue operating, the college must receive ..
Wyatt has a long-term contract that allows them : Wyatt oil is considering drilling a new oil well that is initially expected to produce oil at a rate of 10 million barrels per year. Wyatt has a long-term contract that allows them to sell the oil at a profit of $2.50 per barrel. The cost of drilling..
What is the estimated value of a share of common stock : The risk free rate is 7%, the return in the market is 10%, and the beta is 1.30. What return must you receive to be satisfied that you are being fairly compensated for the risk of the firm? What should a zero coupon bond maturing for $1000 in 9 years..
Majority shareholder of several closely held corporations : Piercing the Corporate Veil M.R. Watters was the majority shareholder of several closely held corporations, including Wildhorn Ranch, Inc. (Wildhorn). All these businesses were run out of Watters’s home in Rocky Ford, Colorado.  During August 1986, t..

Reviews

Write a Review

Financial Management Questions & Answers

  Determine the cost of the cash discounts to warren

Warren Motor Company sells $30 million of its products to wholesalers on terms of "net 30." Currently, the firm's average collection period is 48 days. In an effort to speed up the collection of receivables, Warren is considering offering a cash disc..

  Issued perpetual preferred stock with an annual dividend

Ajax Company has issued perpetual preferred stock with an annual dividend of $4.80. What is the value of this preferred stock if the required rate of return is 8 percent?

  Strong tool company has been considering purchasing a new

strong tool company has been considering purchasing a new lathe as a replacement for a fully depreciated lathe that can

  What is the unlevered cost of capital

If the cost of equity is 14.8% and a pre-tax cost of debt is 7.5%. The debt-equity ratio is .40 and the tax rate is .34. What is the unlevered cost of capital?

  Would the firms break-even point increase or decrease

Schweser Satellites Inc. produces satellite earth stations that sell for $100,000 each. The firm’s fixed costs, F, are $2 million, 50 earth stations are produced and sold each year, profits total $500,000, and the firm’s assets (all equity financed) ..

  Compute the cash collections from sales for each quarter

The sales budget for your company in the coming year is based on a quarterly growth rate of 10 percent with the first-quarter sales projection at $225.8 million. In addition to this basic trend, the seasonal adjustments for the four quarters are 0, −..

  The balance sheet contains the

The balance sheet contains the

  What is probability that jenkins will incur operating losses

What is the probability that Jenkins will incur operating losses? What is the probability that Jenkins will operate above its breakeven point?

  Raised floating-rate funds

Company B is a project and has raised floating-rate funds. It is looking into swapping its floating payment liabilities for fixed rate payment liability to manage its interest rate risk.

  Constant growth valuation-preferred stock valuation

Nick’s Enchiladas Incorporated has preferred stock outstanding that pays a dividend of $5 at the end of each year. The preferred sells for $50 a share. What is the stock’s required rate of return. Crisp Cookware’s common stock is expected to pay a di..

  Analyst will make regarding the investment opportunity

An analyst evaluting the North facility expects that the project will be financed by debt that costs the firm 7%. What recommendation do you think this analyst will make regarding the investment opportunity? Another analyst assigned to study the Sout..

  What is present value of these cash flows-present value

Seaborn Co. has identified an investment project with the following cash flows. If the discount rate is 10 percent, what is the present value of these cash flows? What is the present value at 17 percent?

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