Find the future value of the following ordinary annuities

Assignment Help Financial Management
Reference no: EM131068864

Find the future value of the following ordinary annuities: using the TVM CALCULATOR find a. FV of $400 each six month for five years at a simple rate of 12%, compounded semiannually. b. FV OF$200 each three months for five years at a simple rate of 12 percent, compounded quarterly c. the annuity in part b earns $101.75 more than the one in part a over the five years. why does this occurs??

Reference no: EM131068864

Questions Cloud

The coefficient variation of the return : Champion Breweries must choose between two asset purchases. The annual rate of return and related probabilities given below summarize the firms analysis. For Each asset computer: a) Expected rate of return? b) The standard deviation of the expected r..
Create portfolio with an expected return : You have $299 thousand to invest in a stock portfolio. Your choices are Stock H, with an expected return of 14.81 percent, and Stock L, with an expected return of 10.01 percent. If your goal is to create a portfolio with an expected return of 12.91 p..
Create portfolio equally as risky as the market : You want to create a portfolio equally as risky as the market, and you have $500,000 to invest. Information about the possible investments is given below: How much must you invest in Stock C?
Rational expectations theory and anomaly theory : Market bubbles such as the technology bubble of the 1990s and the housing bubble of 2004-2007 are best explained by: A) Rational Expectations theory B) Anomaly theory C) the efficient market hypothesis D) behavioral finance and economics.
Find the future value of the following ordinary annuities : Find the future value of the following ordinary annuities: using the TVM CALCULATOR find a. FV of $400 each six month for five years at a simple rate of 12%, compounded semiannually. b. FV OF$200 each three months for five years at a simple rate of 1..
Paid prior to paying the common stockholders : A firm has issued cumulative preferred stock with a $100 par value and a 12 percent annual dividend. For the past two years, the board of directors has decided not to pay a dividend. The preferred stockholders must be paid prior to paying the common ..
Statements is indicative of an optimal capital structure : Which one of the following statements is indicative of an optimal capital structure? Choose one of the following answers
Probability of doubling and probablity of tripling : Assume that the returns from an asset are normally distributed. The average annual return for this asset over a specific period was 17.1 percent and the standard deviation of those returns in this period was 41.7 percent. What is the approximate prob..
What is the dollar value of inventory held by the firm : Camp Manufacturing turns over its inventory five times each year, has an average payment period of 35 days , and has an average collection period of 60 days. The firm has annual sales of $3.5 million and cost of goods sold of $2.4 million. Calculate ..

Reviews

Write a Review

Financial Management Questions & Answers

  Question 1the current yield on a 5000 8 percent coupon bond

question 1the current yield on a 5000 8 percent coupon bond selling for 4000 is5.8.10.20.none of the above.question

  What annual rate of return is analyst assuming you can earn

A financial analyst tells you that investing in stocks will allow you to double your money in 7 years. What annual rate of return is the analyst assuming you can earn?

  What is the expected return on its equity

The risk free interest rate is 6% and the expected market return is 16%. Ignore taxes. if company z has an asset beta of .6 what is the expected return on its assets? If company z has only risk-free debt/equity ratio is 1/3, what is the expected retu..

  What is the sensitivity of OCF to changes in variable cost

We are evaluating a project that costs $500,000, has an eight-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 50,000 units per year. Price per unit is $40, va..

  Exercised due diligence in evaluating investment proposal

If you were assessing the extent to which a financial consultant exercised due diligence in evaluating an investment proposal, would you be influenced by the consultant’s choice between internal rate of return and present value as an evaluation metho..

  Realized gain on disposal-unified gift and inheritance tax

The realized gain on disposal is: The treatment of a gain under the instalment sales method is: The tax basis of property acquired in a like-kind exchange: Which one of the following would not qualify as a like-kind exchange? The Unified Gift and Inh..

  What are comparative levels of investment returns for each

Bonds, also called fixed-income securities, provide investors with successive income over a specific time frame at regular intervals. These securities are issued by a number of companies, municipalities, and government agencies. What are the comparat..

  Considering the purchase of two machines

ACE Co. is considering the purchase of two machines. Machine A costs $100,000 with annual cost of $20,000. It will last for 5 years, and have a salvage value of $5,000 at the end of 5 years. Machine B costs $145,000 with annual costs of $17,500, and ..

  Firm has a limited capital budget

If a firm has a limited capital budget and too many good capital projects to fund them all, it is said to be facing the problem of

  Bond portfolio using price sensitivity hedge ratio

A bond portfolio is worth $24,000,000 today. The futures price for a Treasury note futures contract is $110,000 and each contract is for the delivery of bonds with a face value of $100,000. How many contracts are necessary for hedging the bond portfo..

  Risk-free rate-what is the cost of equity

The risk-free rate on 30 year U.S. Treasury bonds is 2.75% and the expected rate of return on the overall stock market is 7%. The BOW company has a beta of 1.4. What is the cost of equity?

  Demonstrate use of time value of money

Demonstrate Use of Time Value of Money (TVM) in a Personal or Workplace Setting - Learning tends to be richer and long lasting when you can define your own problems and background contexts.

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