The discount rate and the time increases-the future value

Assignment Help Financial Management
Reference no: EM13943636

Other things equal, as the discount rate and the time increases, the future value:

a. Remains constant

b. Also increases.

c. Decreases.

d. Becomes negative.

e. Will vary but the direction of the change remains unknown.

Reference no: EM13943636

Questions Cloud

Services to three different types of technologies : Asynchronous Transfer Mode (ATM) offers services to three different types of technologies: Constant Bit Rate (CBR), Unspecified Bit Rate (UBR) and Available Bit Rate (ABR). Each technology has its pros/cons when dealing with ATM.
Annual salary through payroll deduction and matches dollar : Kristin Caldwell has just graduated from college and is considering job offers from two companies. Although the salary and insurance benefits are similar, the retirement programs are not. The other firm has a contributory plan that allows employees t..
Develop a techno-economic analysis : Waste Wood Biomass and Energy Issues and develop a techno-economic analysis of Thermo chemical processing route for the conversion of wood waste biomass in Nigeria to energy.
Information and communication technology infrastructure : In this Group Project, assume that you and the members of your group are top managers of a big international company spread over several continents. You decide to rebuild/expand your company's Information and Communication Technology infrastructur..
The discount rate and the time increases-the future value : Other things equal, as the discount rate and the time increases, the future value:
Value chain designs and structures : Task Identify two organisations in an industry of your choice. These organisations must have clearly different value chain designs and structures.
Portfolios should have the most systematic risk : Which one of the following portfolios should have the MOST systematic risk?
Find size of monthly payments he will be required to make : Joe secured a loan of $12,000 five years ago from a bank for use toward his college expenses. The bank charges interest at the rate of 4%/year compounded monthly on his loan. Now that he has graduated from college, Joe wishes to repay the loan by amo..
Exchange rate-dollar depreciated : Last week, the USD/ZAR exchange rate was 14.2125. This week, the exchange rate is 14.5447. How much has the South African rand depreciated/appreciated against the U.S. dollar? Last week, the USD/ZAR exchange rate was 14.2125. This week, the exchange ..

Reviews

Write a Review

Financial Management Questions & Answers

  What is value of firm-debt with both a book and face value

The Montana Hills Co. has expected earnings before interest and taxes of $8,100, an unlevered cost of capital of 11%, and debt with both a book and face value of $12,000. The debt has an annual 8% coupon. The tax rate is 34%. What is the value of the..

  Part a1 give the role amp significance of or in business

part a1. give the role amp significance of o.r. in business amp industry for scientific decisions.2. the primary

  Japans 2013 wbc entry will certainly not feature any type

the 3rd edition of the world baseball classic wbc will certainly be played from march 2-19 authentic panthers jersey

  Compute mrs gomezs recognized gain or loss on the sale

Mrs. Gomez, a widow, paid $148,000 for her home 20 years ago. She recently sold this home and moved in with her son on a permanent basis. Compute Mrs. Gomez's recognized gain or loss on the sale assuming that her amount realized was: a. $140,000. b. ..

  Invest in stock portfolio

You have $251,000 to invest in a stock portfolio. Your choices are Stock H, with an expected return of 14.1 percent, and Stock L, with an expected return of 10.2 percent. If your goal is to create a portfolio with an expected return of 12.05 percent,..

  Find the sales tax of a new ground pool

Find the sales tax of a new above ground pool that you pay $10,500 for if the tax rate in your area is 8.9%. b) Find the marked price and tax for an $11 beer at the local football stadium, where the sales tax rate is 9.5%.

  Expenses for water treatment at a state park

Expenses for water treatment at a state park are expected to be $60,000 now, $25,000 in year one, and $10,000 per year thereafter forever. At an interest rate of 8% per year, the capitalized cost of the treatment is nearest to:

  Stock according to the security market line

What is your total return on the stock? What is the dividend yield? What is the capital gains yield and what is the expected return of the stock according to the security market line?

  Explain the key factors that should influence her decision

Lisa Taylor is considering whether she should invest some extra money in a mutual fund or an ETF. Explain the key factors that should influence her decision.

  Difference between the present values of each investment

Consider two investments that you can make. You can either buy a share of stock in a company that will pay a dividend of $ 10 every year into the foreseeable future, or a buy a special type of bond that will start paying the same $ 10 in one year, an..

  Assuming discount rate-present value of a perpetuity

Calculate the following values, assuming a discount rate of 8%: a. present value of a perpetuity (also called a perpetual annuity) of $50 received each year at the end of each year PV of perpetuity = A/i where A is annual payment and i is disc rate S..

  Paid dividend per share

Could I Industries just paid a dividend of $1.05 per share. The dividends are expected to grow at a 20 percent rate for the next 6 years and then level off to a 5 percent growth rate indefinitely. If the required return is 13 percent, what is the val..

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