Perpetuity discounted back to the present

Assignment Help Finance Basics
Reference no: EM131388368

What is the present value of a $624 perpetuity discounted back to the present at 9.63 percent.

The answer should be calculated to two decimal places

Reference no: EM131388368

Questions Cloud

What were the main challenges and how were they overcome : Brief history of the business or founder(s). What were the main challenges and how were they overcome? Why has the entrepreneur/business become so successful?
Explore for the best investment options-security selection : Debt instruments/bonds, equity/stocks, mutual funds, and other investment alternatives are important to explore for the best investment options and security selection for your portfolio.
Typical asset structure and the intended investment : Briefly outline a typical asset structure and the intended investment security options (stocks, bonds, mutual funds, retirement accounts, and other alternative investment types) and characteristics for an optimized portfolio with the consideration..
What are your specialties or areas of clinical focus : In what setting do you practice? How long have you been practicing?What are your specialties or areas of clinical focus? What are the most common disorders you treat? Do you have any special certifications or training beyond your original graduate co..
Perpetuity discounted back to the present : What is the present value of a $624 perpetuity discounted back to the present at 9.63 percent.
How does the specificity rule enter into the discussion : One repsonse to the problems faced by countries that do not feel they are benefitting from trade is to have gov't interfere in the process with things like tariffs. Outline the case for tariffs/situations where tariffs may work. How does the 'specifi..
Earns an annual interest rate : You placed $9,258 in a savings account today that earns an annual interest rate of 11 percent compounded annually. How much will you have in this account at the end of 38 years? Assume that all interest received at the end of the year is reinveste..
Reduces output below potential output : What was the Fed's mistake in causing the Great Inflation of the 1970s? They mistakenly thought that the decrease in output was because of a negative demand shock that reduces output below potential output, but in truth the productivity slowdown was ..
Equal year-end deposits into a savings account : For the next 6 years, you decide to place $3,494 in equal year-end deposits into a savings account earning 6.85 percent per year. How much money will be in the account at the end of that time period?

Reviews

Write a Review

Finance Basics Questions & Answers

  Find per year operating cash flow for both projects

Find Cash Flow from Assets in each of the 10 year lives of projects 1 and 2 (remember to include the effect of additions to NWC).

  What is the npv

What is the NPV

  What is the equilibrium price

What is the equilibrium price? Output and profits of the low cost gold mine and for what parameter values could the low cost gold mine exercise market power?

  What is the unlevered value of the firm

The company is in the process of issuing $2 million of bonds at par that carry a 5% annual coupon. What is the unlevered value of the firm (in millions)?

  Describe the principal-agent relationship

Describe the principal-agent relationship. In your answer, give an example of how a principal-agent problem arises in the corporate world. Can such a problem become costly? Please explain.

  The four basic types of venture capital funds

What is an angel capitalist? How do the financing techniques used by angels differ from those used by professional venture capitalists?

  Explain effect of risk free rate on cost of equity and debt

Explain Effect of risk free rate on cost of equity and debt and Assume that the risk-free rate increases

  Problem regarding the debt-equity ratio

The Five and Dime Store has a cost of equity of 15.8 percent, a pretax cost of debt of 7.7 percent, and a tax rate of 35 percent. What is the firm's weighted average cost of capital if the debt-equity ratio is 0.40?

  Compare the traditional ira with the roth ira

Compare the traditional IRA with the Roth IRA

  Analyze and forecast a comparison of the population growth

Analyze and forecast a comparison of the population growth rate from 2010 through 2016 of the State of Michigan and your state. Provide these figures in your response for each year.

  What is the company net income

Shelton, Inc., has sales of $14 million, total assets of $12 million, and total debt of $6.7 million. Assume the profit margin is 7 percent. What is the company's net income?

  How is consumer debt different today than in the past

Many of today's interest rates are variable rather than fixed. What difference does this make to pension plans, housing loans, and other personal finances?

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