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What is the present value of a cash flow

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Reference no: EM132551030

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Q1. What is the present value of a cash flow if 16,000 yuan will be received in 2 years and the discount rate (interest rate) is 10%?

Q2. What is the present value if the discount rate is 4%?

Q3. What is the price of a stock ifthe next dividend is 100 yuan, the cost of capital R is 10% and the growth rate is 6%? What is the price of the stock if the growth rate is 8%? Use the model, Price = D1/(R-g). What happens to the stock when the growth rate increases?

Q4. A firm increases the dividend from 100 yuan to 120 yuan, the cost of capital is 10% an the growth rate is 6%. What should happen to the stock price?

Q5. List 7 ideas or strategies for investing in stocks?

Reference no: EM132551030

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