What is the present value

Assignment Help Financial Management
Reference no: EM131021495

What's the present value of a $930 annuity payment over five years if interest rates are 9 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Reference no: EM131021495

Questions Cloud

Pays interest forever and has no maturity date : A bond that pays interest forever and has no maturity date (perpetual or consol bond) is similar to a 1) no growth common stock and 2) a preferred stock in what ways?
What are its average accounts payable : Hinkle Corporation buys on terms of 2/15, net 60 days. It does not take discounts, and it typically pays on time, 60 days after the invoice date. Net purchases amount to $550,000 per year. On average, what is the dollar amount of total trade credit (..
Land and buildings are examples of real property investments : Land and buildings are examples of real property investments. A Unites States Savings Bond is an example of an investment as defined in the text. Banks and insurance companies are examples of institutional investors. Investing online is usually less ..
Hedges exposed to basis risk : An unexpected strengthening of the basis will benefit which of the following hedges exposed to basis risk? a. Long Hedge b. Both a Short and Long Hedge c. A Perfect Hedge d. A Cross Hedge e. Short Hedge
What is the present value : What's the present value of a $930 annuity payment over five years if interest rates are 9 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Conservative and aggressive investors : Describe how, if at all, conservative and aggressive investors might use each of the following type of transactions as part of their investment programs. Contrast these two types of investors in view of these preferences. a. Long purchase b. Margin t..
Inventory control system-what is economic ordering quantity : Fisk Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores . Fisk anticipates sales of 75,000 units per year, an ordering cost of $8 per order, and carrying costs of $1.20 per unit. Wh..
Decide whether to apply for a credit card or a debit card : Scott Bauer is trying to decide whether to apply for a credit card or a debit card. He has $8,500 in a savings account at the bank and spends his money frugally. What advice would you have for Scott? Describe the benefits and drawbacks of each type o..
You pay off this loan your total finance costs : You just bought a car and borrowed $15,000 for 5 years at 8% APR. Using the simple interest method; by the time you pay off this loan your total finance costs will be closest to which of the following?

Reviews

Write a Review

Financial Management Questions & Answers

  Calculating returns-bought bond with an annual coupon

Calculating Returns [LO1] Suppose you bought a bond with an annual coupon of 7 percent one year ago for $970. The bond sells for $940 today. What was your total nominal rate of return on this investment over the past year?

  Which type of security would it need to sell to accomplish

Suppose that Lil John Industries’ equity is currently selling for $45 per share and that 3.8 million shares are outstanding. The firm also has 68,000 bonds outstanding, which are selling at 103 percent of par. Assume Lil John was considering an activ..

  How many months will it take you to pay off entire balance

When you graduate you have $15,000 on your credit card which charges an APR of 14% compounded monthly. The credit card company tells you that your minimum payment is $232.90. If you make the minimum payment every month, how many months will it take y..

  Valuation-what is the current price of van burens stock

Harrison Corporation is interested in acquiring Van Buren Corporation. Assume that the risk-free rate of interest is 4% and the market risk premium is 6%. Van Buren currently expects to pay a year-end dividend of $2.40 a share (D1 = $2.40). Van Buren..

  The investment of this buyer as function of interest rate r

Consider a homebuyer/investor who plans to buy a new house, the price of which is 1 million dollars. Suppose the buyer does not have any initial savings for the down payment. That is, if the mortgage asks him to repay more than $ 50,000 per year (thi..

  Appropriate futures using a simple naive hedge

It is Jan 31, you expect to sell your stock portfolio 3 months later on April 30. Today the portfolio worths $1 million. And today, price of the April stock index futures is $20000 whereas the May stock index futures is $25000. Please calculate the o..

  Liquidity premium in order to purchase longer-term security

The liquidity premium theory of the term structure helps explain why on average, the Treasury yield curve typically slopes upward. The liquidity premium theory relies on the fact that the longer the maturity, the less liquid the bond and thus, the hi..

  Value of a bond in relation to annual discounting

What effect does the use of semi-annual discounting have on the value of a bond in relation to annual discounting?

  Seattle health plans currently uses zero-debt financing

Seattle Health Plans currently uses zero-debt financing. Its operating income (EBIT) is $1 million, and it pays taxes at a 40% rate. It has $5 million in assets and, because it is all-equity financed, $5 million in equity. What impact would the new c..

  Using clean surplus accounting approach based on projected

From your forecasts of starbucks' financial statements for years +1 through +5, derive the projected dividends using the projected amounts for the plug to dividends minus the net amounts of common stock issued each year (if any). Then compute project..

  Considering investing in a new dental instrument

West Side Dental Group is considering investing in a new dental instrument. The instrument costs $90,000 and can be depreciated to zero on a straight-line basis over its life of 3 years. The instrument is expected to have no salvage value. Currently,..

  Golbal remitence case-financial account components

Where are remittances across borders included within the balance of payments? Are they current or financial account components? Under what conditions are remittances significant contributors to the economy and overall balance of payments? What role d..

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