Present value of a perpetuity making quarterly payments

Assignment Help Financial Management
Reference no: EM13847793

A business borrows $297,268 for 12 years at an annual rate of interest of 7.4%. If payments are annual and the loan will negatively amortize by $45,318, what will be the annual payment required? Put your answer in as a positive number.

 

What is the present value of a perpetuity making quarterly payments in arrears in the amount of $9,102 per quarter, and the appropriate annual rate of interest is 10.8%?

Reference no: EM13847793

Questions Cloud

Explain how the implementation project will be organized : Explain how the implementation project will be organized and staffed and the level of commitment at all levels from Management and Directors to workers;?
The current price of a 6-month zero coupon bond : Need detailed calculations for the following:The current price of a 6-month zero coupon bond with a face value of $100 is 97.92. If a 9-month strip with a face value of $100 is currently trading for 96.62, find the forward interest rate for the 6 to ..
Hinder meaning and free of plagiarized material : The project should be clear, coherent, and well organized. It should be free of errors that hinder meaning and free of plagiarized material.
Formulate a linear programming model : Formulate a linear programming model
Present value of a perpetuity making quarterly payments : A business borrows $297,268 for 12 years at an annual rate of interest of 7.4%. If payments are annual and the loan will negatively amortize by $45,318, what will be the annual payment required? Put your answer in as a positive number. What is the pr..
What is the factorys present value : A factory forecasts to produce the following cash flows: If the cost of capital is 6%, what is the factory's present value?
Which specialty area interests you the most and why : Using both the assigned readings and additional research, respond to the following: Which specialty area interests you the most? Why? According to the specialty area, what knowledge, skills, and abilities do you consider are most important? Explain
What is the firms current estimated intrinsic stock price : Your employer, a mid-sized human resources management company, is considering expansion into related fields, including the acquisition of Temp Force Co. an employment agency that supplies word processor operators and computer programmers to business ..
What is the null hypothesis? what is the research hypothesis : What is the null hypothesis? What is the research hypothesis?

Reviews

Write a Review

Financial Management Questions & Answers

  How to prepare a monthly schedule of cash receipts

Seventy percent of Ellis' sales are on credit with 60 percent of receivables collected in the month after the sale and the rest of receivables collected in the second month after the sale.

  Structure between investor-owned and not-for-profit business

What is the major difference in ownership structure between investor-owned and not-for-profit businesses?

  Determine continuously compounded risk-free interest rate

Consider four 5-year European options with different strike price. Determine the continuously compounded risk-free interest rate

  Calculate the expected rate of return for the portfolio

Calculate the expected rate of return for each stock separately and calculate the expected rate of return for the portfolio.

  Net operating working capital captures multiple dimensions

"Net operating working capital captures multiple dimensions of firms’ adjustments to operating and financial conditions. Sales growth, uncertainty of sales, costly external financing, and financial distress encourage firms to pursue more aggressive w..

  What is the initial investment and what is the total payoff

A trader creates a bear spread by selling a 6-month put option with a $25 strike price for $2.15 and buying a 6-month put option with a $29 strike price for $4.75. What is the initial investment? What is the total payoff (excluding the initial invest..

  Market value and the face value of the zero-coupon bond

You will be paying $10,000 a year in education expenses at the end of the next two years. Currently the yield curve is flat at 8%. If you want to fully fund and immunize your obligation with a single issue of a zero-coupon bond, what maturity bond mu..

  For initial public offerings of common stock

For initial public offerings of common stock, 2010 was a relatively slow year, with about $30.7 billion raised by the process. Relatively few of the 94 firms involved paid cash dividends. Why do you think that most chose not to pay cash dividends? Ex..

  The present value interest factor for an ordinary annuity

The present value interest factor for an ordinary annuity is:

  Short sale margin calculations

You sell short 300 shares of Microsoft which are currently selling at $30 per share. You post the 50% margin required on the short sale. The broker requires a 30% maintenance margin.

  Write a brief overview concerning stock valuation

Write a brief overview concerning stock valuation. A brief explanation of the legal rights and privileges of common stockholders.

  What is the profitability index of the investment

You are offered an investment with returns of $ 1,211 in year 1, $ 4,785 in year 2, and $ 5,756 in year 3. The investment will cost you $ 6,129 today. If the appropriate Cost of Capital (quoted interest rate) is 9.4 %, what is the Profitability Index..

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