Projects growth rate in earnings

Assignment Help Financial Management

Reference no: EM13873530

LOL Inc. expects to earn 627,000 this year and projects a growth rate in earnings of 4.5%/year thereafter (k=3.5%)/ what is the PV of the earnings if it expects to grow for another 8 years and to have then level earnings forever?

A) 24359974.94

B) 24360079.94

C) 24360174.94

D) 24360274.94

E) None of the above

Reference no: EM13873530

Questions Cloud

Investment banking firm-two different salary arrangements : You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered you two different salary arrangements. You can have $85,000 per year for the next two years, or you can have $74,000 per year for the next two years, along wi..

What is the average ph of rum : How is chlorinity related to salinity? Explain. What happens to local salinity when evaporation rates increase: Rises or Lowers and What happens to local salinity when ice formation rates increase: Rises or Lowers?

Describe all steps you would go through to help organization : Describe all the steps you would go through to help your organization establish 20% of all positions as a flexible portion of the workforce.

Developing a promotion mix is contingent : Developing a promotion mix is contingent on many factors, including the type of product and the products attributes - Developing the promotion mix for the following products

Projects growth rate in earnings : LOL Inc. expects to earn 627,000 this year and projects a growth rate in earnings of 4.5%/year thereafter (k=3.5%)/ what is the PV of the earnings if it expects to grow for another 8 years and to have then level earnings forever?

Cash and marketable securities : From the balance sheet you find the following balances: cash and marketable securities = $200,000, accounts receivable = $1,100,000, inventory = $2,000,000, accrued wages and taxes = $500,000, accounts payable = $600,000, and notes payable = $100,000..

Design a bfs-based algorithm : Design a BFS-based algorithm (pseudo code) for directed graph that computes the total number of paths from vertex srcU to vertex destV.

In addition to comparison with industry ratios : In addition to comparison with industry ratios, it is also helpful to analyze ratios using

Define the term code of business conduct : Define "code of business conduct". Discuss businesses should concern themselves with developing a code of business conduct? If so, what variables should be included?

User Account

All Pages