What is its present value

Assignment Help Financial Management

Reference no: EM13811267

Perpetuity of $4,500 per year beginning today is said to offer a 13% interest rate. What is its present value? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Reference no: EM13811267

Questions Cloud

Shareholders as the annual dividend : Michael's, Inc. just paid $2.75 to its shareholders as the annual dividend. Simultaneously, the company announced that future dividends will be increasing by 5.90 percent. If you require a rate of return of 10.1 percent, how much are you willing to p..

Which mutually exclusive project should be selected : Which mutually exclusive project should be selected, based on a 12% cost of capital and the following: IRR(A)= 15%, IRR(B)= 13%; incremental IRR(B-A)= 18%? Why?

Determine the total tax revenue for the state : The department of revenue estimates that the average tax revenue from each citizen is as follows: income tax, $800; sales tax, $150; personal property tax, $250. In addition, the average corporate tax is $7,500 per company. Develop a model that will ..

Total deductions from the scholarship and work-study wages : You have just been notified by the student aid and scholarships office that you would receive a regents' scholarship of $2,000 for the coming academic year. Furthermore, your application for a work-study program has also been accepted. You estimate t..

What is its present value : Perpetuity of $4,500 per year beginning today is said to offer a 13% interest rate. What is its present value?

Is management acting in the share holders best interests : Suppose you own stock in a company. The current price per share is $25. Another company has just announced that it wants to buy your company and will pay $35 per share to acquire all the outstanding stock. Your company management immediately begins f..

Is this a discount or premium bond : Compute the price of a 4.9 percent coupon bond with 15 years left to maturity and a market interest rate of 7.6 percent. What is the bond price? Is this a discount or premium bond?

How much principal is amortized with the first payment : $70,000 is borrowed, to be repaid in three equal, annual payments with 12% interest. Approximately how much principal is amortized with the first payment?

What is the minimum nominal rate of return : What is the minimum nominal rate of return you should accept, if you require a 5% real rate of return and the rate of inflation is expected to average 4.60% during the investment period?

User Account

All Pages