What is effective annual rate on this loan

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Reference no: EM131817793

1. You borrow $100 today at 4% for 1 year. What is the effective annual rate on this loan if interest is compounded monthly?

(Do not round intermediate calculations. Round your answer to 3 decimal places. (e.g., 32.165))

Rate %.

2. A company has an FCF forecast of 10 in year 1 and 14 in year 2. Starting in year 3, FCF is expected to grow by 4% per year, forever. The WACC is 10%. What is the value of operations?

Reference no: EM131817793

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