What is the present value of your offer

Assignment Help Financial Management
Reference no: EM13848187

You have just been offered a job. Your base salary will be $75,000 per year and the first year’s annual salary will be received one year from the day you start working. You receive a bonus immediately of $12,500. Your salary will grow 4 percent per year and you will receive a bonus of 10 percent of your salary. You expect to work 30 years. Your discount rate is 10 percent. What is the present value of your offer?

Reference no: EM13848187

Questions Cloud

How would the minimum yearly cash inflow change : Breakeven cash inflows The One Ring Company, a leading producer of fine cast silver jewelry, is considering the purchase of new casting equipment that will allow it to expand its product line.  If One Ring requires a 9% return on its investment, what..
What specialized vocabulary is used : What specialized vocabulary is used?What other language features do you notice?
Equivalent uniform annual cost analysis method : Two alternatives are suggested for improvement to a power generation plant. Alternative A costs $60,000 and provides yearly benefit of $16,000. Alternative B requires $84,000 of initial cost. However, it will yield benefits in the order of $22,000 pe..
Modernization of pumping station in water treatment facility : Currently, two options are available for modernization of a pumping station in a water treatment facility. Option 1 is to install a pumping system which is more durable at a cost of $20,000. With this option, the system will require to be replaced ev..
What is the present value of your offer : You have just been offered a job. Your base salary will be $75,000 per year and the first year’s annual salary will be received one year from the day you start working. You receive a bonus immediately of $12,500. Your salary will grow 4 percent per y..
What is jacks annualized holding period return : Jack purchased 100 shares of Green Forest INC stock of at a price of $157.65 three months ago. He sold all stocks today for $158.57. During this period the stock paid dividends of $5.67 per share. What is Jacks annualized holding period return ( annu..
What is the value of the bond : A European bond has a par value of 1000 Euros, a coupon rate of 3.9 percent and a yield to maturity of 3.2 percent. The bond has 19 years to maturity. Coupons are made annually. What is the value of the bond?
Exchange rate risk-political risk and transfer pricing : Capital budgeting can be affected by exchange rate risk, political risk, transfer pricing, and strategic risk. Explain how these factors may and can impact capital budgeting.
What is the current share price-growth rate in dividends : Leisure Lodge Corporation is expected to pay the following dividends over the next four years: $15, $10, $5, $2.20. Afterwards, the company pledges to maintain a constant 4% growth rate in dividends forever. If the required return on the stock is 10%..

Reviews

Write a Review

Financial Management Questions & Answers

  The accumulated sum of the following stream of payments

What is the accumulated sum of the following stream of payments? $21,509 every year at the beginning of the year for 15 years, at 7.84 percent compounded annually.

  What is net interest margin ratio-required reserves ratio

A depository institution holds $190 million in required reserves and $24 million in excess reserves.   Its remaining assets include $576 million in loans and $310 million in securities. Equity is $100 million. If the institution’s only liabilities ar..

  How the inflation rate would affect the return

Explain your reasoning. Be sure to consider how the inflation rate would affect the return - A leader in your firm has been studying the foreign exchange market for a number of years and believes that she can predict several of the foreign currency..

  Calculate the yield-to-maturity

Cellular International zero coupon bonds (par value $1,000) mature on April 21, 2020. Calculate the yield-to-maturity if an investor purchased one of these bonds on April 21, 2014, at a price of $650.

  Equal to the present value of the redemption amount

A bond with face and redemption amount of $3000 with annual coupons is selling at an effective annual yield rate equal to twice the coupon rate. The present value of the coupons is equal to the present value of the redemption amount. What is the sell..

  The size of the market will help determine

The size of the market will help determine which of the following factors:

  High-liquidity plan the return

Optimal policy mix Assume that Atlas Sporting Goods, Inc., has $800,000 in assets. If it goes with a low-liquidity plan for the assets, it can earn a return of 15 percent, but with a high-liquidity plan the return will be 12 percent. If the firm goes..

  How much would an investor pay for the the bond

What are some of the dangers and incentive problems of the financial sector getting too big and commonwealth Bank issues bonds on the capital market to raise financing for its loans.

  Compute the profits-losses from the strategy

The trade is performed over one week-How do the results change under these various scenarios? Discuss your results.

  Which instrument do you want to be short and long

Suppose the current one-month futures price for a 2-year U.S. Treasury note is 99.77 (percent of par) with a yield of about 1% and the current one-month futures price for a 10-year U.S. Treasury note is 95.17 with a yield of about 3.7%. The 2-year no..

  Equity capital and it has two equally-sized divisions

Duval Inc. uses only equity capital, and it has two equally-sized divisions. Division A's cost of capital is 10.0%, Division B's cost is 14.0%, and the corporate (composite) WACC is 12.0%.

  What is return on equal weighted index of these three stocks

Assume there are only three stocks in the market: A, B, and C. At time 0, P(A) = $10, P(B) = $20, and P(C) = $10. At time 1, P(A) = $15, P(B) = $30, P(C) = $5. The number of shares outstanding is 1 million for A, 2 million for B, and 2 million for C...

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