What is the present value of the following perpetuities

Assignment Help Finance Basics
Reference no: EM13289754

What is the present value of the following perpetuities?

a. $200.00 per year discounted at 8% annually.
b. $500.00 per year discounted at 9% annually.
c. $1,000.00 per year discounted at 6% annually.

 

Reference no: EM13289754

Questions Cloud

Find the apparent weight of the cable : a solid, uniform sphere (r=20 cm, density= 850 kg/m cubed) is attached by a massless cable to the ceiling of a room, find the apparent weight (the reading on the scale) when the cable tension is
Express answer in terms of p1 : A gas sample enclosed in a rigid metal container at room temperature (20.0°C) has an absolute pressure p1. The container is immersed in hot water until it warms to 40.0°C. What is the new absolute pressure p2?
What is wrong and how can the memory be tested : The address lines (A0-A7) are checked with a logic probe and all areindicating pulse activity, except for A3 which shows a constantHIGH, and A7 which shows a constant LOW; the select lines, S0 andS1 are checked and S0 shows pulse activity, while S..
State the reaction proceeds to form benzoic acid : Assuming that you start with 2.00 g of sodium benzoate and 5 mL of 3 M HCl, and assuming that the reaction proceeds to form benzoic acid, what would your theoretical yield be? use two decimal places
What is the present value of the following perpetuities : What is the present value of the following perpetuities?
Speed in kmhr relative to the moving water : A boat is to cross a river on a course directed 20.0° north of east in 10 minutes from point A to point B. The distance from point A to point B is 815m. If the river flows at a speed of 3.0 km/hr, at what angle upstream must the boat be headed,..
What is the expected acceleration of the glider : Slopping air track: A glider moves frictionlessly along an air track that has been tilted by 1.5 inches over a span of 1.00 meters. What is the expected acceleration of the glider
Compute the profitability index for each project : Fully explain your logic, how would you decide between these two projects and which would you recommend?
Explain the reaction of na2so3 with ch3co2h : Write an overall, balanced equation for the reaction of Na2SO3 with CH3CO2H, and name the reactants and products.

Reviews

Write a Review

Finance Basics Questions & Answers

  Analyze the quarterly dividend growth rate

Get the current price and 5-year dividend history for Eli Lily & Corporation To gather this information, enter the ticker symbol (LLY) in the Get Quotes box at the top of the page and then click the GO button.

  What would the wcs before tax component cost of debt

WC, Inc. has a $10,000,000 (face value) a 10 year bond selling for 99% of par that pays an annual coupon of 9% . What would the WC's before tax component cost of debt?

  Amortization expense

Dade buy a patent on January 1, 2003 for $120,000. The patent had a remaining useful life of ten years at that date. In January 2004, Dade successfully defends patent at a cost of $54,000,

  Find present value of cash flows

You just signed a consulting contract that will pay you $38,000, $52,000, and $85,000 yearly at the end of the next three (3) years, respectively.

  What is the nominal rate of return on these bonds

The outstanding bonds of Roy Thomas, Inc. provide a real rate of return of 3.6 percent. The current rate of inflation is 2.1 percent. What is the nominal rate of return on these bonds?

  Calculation of net present value with given cash flow

Calculation of net present value with given cash flow and probability and Should the company undertake the project

  Calculate arithmetic average return

You've observed the following returns on Crash-n-Burn Computer's stock over the past 5 years: 115, -115, 18%, 23 percent, and 10%.

  What is the cost of equity for the company

A company is known to have a target debt-equity ratio of 0.60. Its WACC is 13.80 percent, and the tax rate is 35 percent.

  Computation of cost of capital and beta

Computation of cost of capital and beta and explain Does it matter if you use the beta for Dell or the beta for the industry in this case

  What level of liquidity and solvency would you looking for

Why is this important, and would you find any of this information on the statement of cash flows? What level of liquidity and solvency would you be looking for? Why?

  Find the value of one right

Gold Mining Company is seeking to increase $10,000,000 through a rights offering. The firm presently has 1,000,000 shares of common stock outstanding at a current market price of $25 per share.

  How much can the investor expect in annual interest

Tangshan Coal, Inc. just issued a 10 percent, 25-year bond with a $1,000 par value that pays interest semiannually. (a) How much can the investor expect in annual interest (in dollars)?

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