User Account

All Pages

What is the present value of a perpetual stream

Assignment Help Finance Basics
Reference no: EM13270314

What is the present value of a perpetual stream of cash flows that pays $90,000 at the end of year one and then grows at a rate of 7% per year indefinitely? The rate of interest used to discount the cash flows is 10%.

Reference no: EM13270314

Questions Cloud

Find the magnetic dipole moment of the loop : A current loop, carrying a current of 3.0 A, is in the shape of a right triangle with sides 30, 40, and 50 cm. Find the magnetic dipole moment of the loop
Explain a fluorine-nuclide transforms into an oxygen : Suppose a fluorine- nuclide transforms into an oxygen- nuclide by absorbing an electron and emitting a gamma ray
Determine the output voltage for an input voltage of 2 v : A µ-law compression encoder has: Vi(max) = 8 V, vi(max) = 1V, µ = 255 Determine the output voltage for an input voltage of 2 V
Calculate metallurgical junction depths of n-type substrate : The surface concentration is fixed at N0=1.8e20/cm^2 when diffusing boron into a uniformly doped n-type substrate. The atomic diffusion constant for boron in Si at the temperature of 950 C is 3.0e-15 cm^2/s.
What is the present value of a perpetual stream : What is the present value of a perpetual stream of cash flows that pays $90,000 at the end of year one and then grows at a rate of 7% per year indefinitely? The rate of interest used to discount the cash flows is 10%.
What is the circuits period of oscillation : The capacitor in an LC circuit has a maximum charge at t= 1 ms. What is the circuit's period of oscillation
What is the most you should pay for the annuity : You just inherited some money, and a broker offers to sell you an annuity that pays $5,200 at the end of each year for 20 years. You could earn 5% on your money in other investments with equal risk. What is the most you should pay for the annuity?
Explain how much vinegar do you need to make pickles : If a pickle recipe requires 2.0 cups of vinegar to make 6 pints of pickles, how much vinegar do you need to make 25.00 gallons of these pickles
What is the npv of the better project : If cash inflows occur at the end of each year, and if Vanderheiden's cost of capital is 10 percent, What is the NPV of the better project?

Reviews

Write a Review

Finance Basics Questions & Answers

  Find the stock expected price today

Suppose that the expected future dividends (D) at end of periods 1,2, and 3, as well as the expected future price (P) at end of period 3 for a stock are as given: D1 = $1.20, D2 = $1.40, D3 = $1.55, and P3 = $80.00.

  What is the firms profit margin

A firm has sales of $211,000, depreciation of $24,600, interest expense of $560, COGS of $148,900, other cost of $6,500, and tax rate of 35%. What is the firm's profit margin?

  Interest versus dividend income

Compute the firms tax on its operating earnings only. Find out the tax and the after-tax amount attributable to the interest income from Zig Manufacturing bonds.

  Achievement of organizational goals

At Sandwich Blitz, Jenny noticed what appeared to be a discrepancy in the time sheet of one of consumer associates. When she asked unit manager about this, she learned that the crew supervisor had allowed the associate to swap out work hours against ..

  What annual interest rate must they earn to reach their goal

Your parents will retire in 19 years. They currently have $300,000, and they think they will need $1 million at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your ans..

  Computing npv of investment if marginal tax rate is given

Marginal tax rate is 35%, and suitable discount rate is 9%. Compute the NPV of this investment. Must this project be accepted or rejected?

  Explain the significance of statement

An organization that does not invest in its employees may be less attractive to prospective employees and may have a more difficult time retaining current employees"

  What is the effective cost of borrowing in this case

Your firm has an average collection period of 25 days. Current practice is to factor all receivables immediately at a 1.50 percent discount.

  Determine using the internal rates of return criterion

Determine using the internal rates of return criterion with an incremental analysis which will offer the largest monetary benefit to AWS if their MARR is 12%.

  Calculate the price of bond if ytm is given

Valuing Bonds: Syberboard has issued a bond with the following characteristics:

  What is the maximum amount of dividends the firm could pay

what is the maximum amount of dividends the firm could pay? Please show work.

  Payoff diagram for a stock and a bond

Make a final payoff diagram for a stock and a bond.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd