Finding present value

Assignment Help Finance Basics
Reference no: EM1343932

Can you please show me how to solve the following problems in excel? Please note that PV stands for present value.

PV of multiple cash flows: Jack Stuart has loaned money to his brother at an interest rate of 5.75 percent. He expects to receive $625, $650, $700, and $800 at the end of the next four years as complete repayment of the loan with interest. How much did he loan out to his brother? (Round to the nearest dollar.)

PV of multiple cash flows: Hassan Ali has made an investment that will pay him $11,455, $16,376, and $19,812 at the end of the next three years. His investment was to fetch him a return of 14 percent. What is the present value of these cash flows? (Round to the nearest dollar.)

PV of multiple cash flows: Pam Gregg is expecting cash flows of $50,000, $75,000, $125,000, and $250,000 from an inheritance over the next four years. If she can earn 11 percent on any investment that she makes, what is the present value of her inheritance? (Round to the nearest dollar.)

Bond price: Briar Corp is issuing a 10-year bond with a coupon rate of 7 percent. The interest rate for similar bonds is currently 9 percent. Assuming annual payments, what is the present value of the bond? (Round to the nearest dollar.)

PV of dividends: Cortez, Inc., is expecting to pay out a dividend of $2.50 next year. After that it expects its dividend to grow at 7 percent for the next four years. What is the present value of dividends over the next five-year period if the required rate of return is 10 percent?

PV of dividends: Givens, Inc., is a fast growing technology company that paid a $1.25 dividend last week. The company's expected growth rates over the next four years are as follows: 25 percent, 30 percent, 35 percent, and 30 percent. The company then expects to settle down to a constant-growth rate of 8 percent annually. If the required rate of return is 12 percent, what is the present value of the dividends over the fast growth phase?

Reference no: EM1343932

Questions Cloud

Demonstrate provide-demand curves also equilibrium for usa : Demonstrate provide/demand curves also equilibrium for the USA, assuming no imports.
Finding decimal equivalent of eight bit numbers : Let the two 8-bit numbers A=01000001 and B=10000100. Provide the decimal equivalent of each number.
Evaluate what is the net income for the year : Common stock increased by $197 and retained earnings decreased by $123 and evaluate what is the net income for the year
Teach a person to fish also he will eat foreve : The saying "Give a person a fish also he shall eat today; teach a person to fish also he will eat forever" is most consistent with.
Finding present value : Can you please show me how to solve the following problems in M.S. excel? Please note that Present Value stands for present value.
Explain what indicators would you look at to assess : Explain what indicators would you look at to assess whether your firm's long-term assets were impaired
Mergers-shareholder value for bentley and rolls : Bentley Corp. and Rolls Manfacturing are considering a merger. The possible states of the economy and each company's value are below: What is the value of each company before the merger? What are the values of each companys debt and equity before th..
Determine the payment expectations for mpfs and ipps : Research and discuss the differences and importance of : MPFS, IPPS, OPPS and DMEPOS. Which provider type is paid by which method? Determine the payment expectations for each type?
Evaluate the value of brands : What approaches would you use to evaluate the value of brands and what assumptions underlie these approaches?

Reviews

Write a Review

Finance Basics Questions & Answers

  Description of future value of annuity

For Bill's tuition expenses, his rich uncle has agreed to loan him $8,000 as he begins college-create a cash flow diagram for amounts mentioned, and calculate the FV for year 5. Next, calculate the AW which is equivalent to the calculated FV at 5%..

  Compute current price of zero coupon bond

Find out the current price of the zero coupon bond with the 6% yield to maturity that matures in 15 years?

  Calculate capital gains yield

Today, you sold 200 shares of SLG, Inc. stock. Your total return on these shares is 12.5%. Calculate capital gains yield on the investment.

  Present value at optimal time to sell

You own 100 acres of timberland, with young timber worth $20,000 if logged today. This represents 500 cords of wood at $40 per cord. What is the present value at the optimal time to sell and when does it occur?

  Computing npv of investment if marginal tax rate is given

Marginal tax rate is 35%, and suitable discount rate is 9%. Compute the NPV of this investment. Must this project be accepted or rejected?

  Explain capital budgeting involves calculation of npv

Explain Capital budgeting involves calculation of IRR, NPV, Payback period and If the required return is greater than the coupon rate

  Trade volatility

Explain how an investor can trade volatility.

  Inventory conversion period of 50 days

Inventory conversion period of 50 days

  Value a stock option

Explain how expected rate of return used to value stock.

  Estimate the continuation value

Estimate the continuation value using the market/book ratio.

  Computation of minimum expected annual returns

Computation of minimum expected annual returns and what is the minimum expected annual returns for stocks 3 will enable Glenda to achieve her investment requirement

  Finance questions

Financial Slacks. For what kinds of companies is financial slack most valuable? Are there situations in which financial slack should be reduces by borrowing and paying out the proceeds to the stockholders? Explain.

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