How much is this contract worth in today dollars

Assignment Help Finance Basics
Reference no: EM131964117

Your favorite football player just signed a 5-year, $50 million dollar contract. Specifically, he will be paid:

5 million today (signing bonus)

5 million in a year

5 million in 2 years

5 million in 3 years

10 million in 4 years

20 million in 5 years

How much is this contract worth in today's dollars if the annual r is 3%?

Reference no: EM131964117

Questions Cloud

What is the firm weighted average cost of capital : Assume GSC has a before-tax cost of debt of 5%, cost of preferred stock of 6.2%, and a cost of equity of 10.5%. GSC has a marginal tax rate of 35%.
What is the before-tax and the after-tax cost : What is the before-tax and the after-tax cost of debt for Essence Corp?
Calculate the npv : You are considering an investment that costs $12,000 today and will generate cash flows over the next three years of $3,000, $7,000, and $6,000.
What is the value of firm operations today : Find the horizon value in year 5 for the firm's constant growth phase. What is the value of firm operations today?
How much is this contract worth in today dollars : Your favorite football player just signed a 5-year, $50 million dollar contract. Specifically, he will be paid:
Value of the company after the loan : According to MM Proposition I with taxes, what would be the increase in the value of the company after the loan? (Enter your answer in dollars
Optimal capital structure of the company : Explain how it can increase or decrease WACC and the NPV both prior to and after the optimal capital structure is reached.
Stock returns for the five-year period : (1) What is the return for year 2016? (2) What is the standard deviation of the stock's returns for the five-year period?
Gaining control over personal finances : What is this ratio and how can it be used when thinking about gaining control over personal finances?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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