What is the grand prize really worth

Assignment Help Financial Management

Reference no: EM132063662

1. A lottery claims its grand prize is $20 million, payable over 5 years at $4,000,000 per year. If the first payment is made immediately, what is the grand prize really worth? Use an interest rate of 7%. The real value of the grand prize is.

2. The projected capital budget of Kandell Corporation is $750,000, its target capital structure is 60% debt and 40% equity, and its forecasted net income is $750,000. If the company follows a residual dividend policy, what total dividends, if any, will it pay out?

a. $450,081

b. $450,000

c. $449,919

d. $449,756

e. $449,838

Reference no: EM132063662

Questions Cloud

How the leadership and management team can improve : Management and Operations - UNIVERSITY OF SUNDERLAND IN HONG KONG - Higher National Diploma in Business - Leadership and Management Concepts

Unlimited supplies of acetyl-coa from fatty acids : After 24 hours of starvation, the glycogen reserves of the liver are exhausted but there are still relatively large stores of fat.

Peptide built from three amino acids : A peptide built from three amino acids must have. A protein built from 12 identical polypeptide chains

Compute for each year the inventory turnover : The following data are from the income statements of Haskin Company. Compute for each year the inventory turnover

What is the grand prize really worth : If the first payment is made immediately, what is the grand prize really worth?

Biosignaling and the kegg database : Describe the relationships between receptors, kinases, and cellular functions in biosignaling.

Determine profit per pound from processing the t-bone steaks : Determine the profit per pound from processing the T-bone steaks into filet mignon and New York cut steaks.

Production of proteins by ribosomes : Describe how the information in mRNA is used in the production of proteins by ribosomes?

Mechanism of synthesis of phosphoribosyl pyrophosphate : What is the mechanism of synthesis of phosphoribosyl pyrophosphate and what role does it play in the cell?

User Account

All Pages