### What if the appropriate discount rate is ten percent

Assignment Help Finance Basics
##### Reference no: EM132049766

Question: (Present value of a growing? perpetuity) What is the present value of a perpetual stream of cash flows that pays \$2,500 at the end of year one and the annual cash flows grow at a rate of 3?% per year? indefinitely, if the appropriate discount rate is 12?%? What if the appropriate discount rate is 10?%?

#### Questions Cloud

 Prepare a well-researched project planning document : The major group project assignment should include various phases of a project life cycle, such as initiating, planning, executing and closing a project. Relationship between job costing and activity based costing : What is the common relationship between job costing, activity based costing, master budget, and responsibility What is the discount rate associated with the stock : When presented with an investment opportunity, Jospeh knows that calculating the interest rate associated with that investment is really imprtant. What concentration is there of the naoh : If a titration of 0.5533 g of KHP needs 25.84 ml of an NaOH solution to reach the equivalence point, then what concentration is there of the NaOH? What if the appropriate discount rate is ten percent : (Present value of a growing? perpetuity) What is the present value of a perpetual stream of cash flows that pays \$2,500 at the end of year one and the annual. What is the molar solubility of m : The Ksp of some metal hydroxide, M(OH)3, is 2x10-31 at 25oC. What is the molar solubility of M(OH)3(s) in a solution that is buffered at pH 4.47 at 25oC? What will be the ph of the new solution : If 22.0 mL of 0.182 M NaOH solution is added to 100. mL of solution which is 0.100 M in HA (Ka = 5.00x10-5) and 0.100 M in NaA, what will be the pH of the new Find the minimum amount of wages that garro must receive : Under the Fair Labor Standards Act, the minimum amount of wages that Garro must receive for a 40-hour workweek is Compare the calculated present values : Compare the calculated present values and discuss them in light of the undiscounted cash flows totaling ? \$75,000 in each case.

### Write a Review

#### Explain the computation for gross margin percentage

Explain the computation for each of the following, and compute each for Apix and two other companies in the same industry as Apix Printing: Current ratio, (Long-term) debt to equity ratio and Gross margin percentage

#### Capital raised into italian

Rierson decideds to invest some of the capital raised into italian 10 year government bonds. a. He decides to invest into ten year 1000 Euro Government bond with 8 % coupon rate and semi annual coupons. If the bond is currently trading for a price..

#### International business ventures in vietnam

Provide a description of complexities to be taken into account when undertaking international business ventures in Vietnam.

#### Discuss how corporate managers exploit investor inattention

Discuss how limited attention is related to other psychological biases such as narrow framing and the use of heuristics.

#### State the definition of a non-current fixed asset

State the definition of a non-current (fixed) asset and explain why each condition is required. Explain the categories: tangible non-current (fixed) assets.

#### Determine the firm degree of operating leverage

If I collect my accounts receivables every 38 days, pay my accounts payable every 35 days, and my inventory turns over 8.4 times per year, what is my cash conversion cycle?

#### The fixed cost at a manufacturing company are 1000000

the fixed cost at a manufacturing company are 1000000 annually. they sell a product that sells for 8.90 each and has

#### Monthly amortization table

Using excel, build a monthly amortization table for a 30-year mortgage on a \$350,000 home, no money down. Use 7% as the yearly interest on the loan.

#### What is the company total debt

Balance Sheet The assets of Dallas & Associates consist entirely of current assets and net plant and equipment. The firm has total assets of \$2.5 million.

#### Inflation and interest rates

What would you expect the nominal rate of interest to be if the real rate is 3.9percent and the expected inflation rate is 7.4?percent?

#### Shares of def stock on margin

Six months ago, you purchased 1600 shares of DEF stock on margin at \$20/share. The initial and maintenance margins are 55% and 30

#### Advent of social media affected each of these media

How has the advent of social media affected each of these media?