What is the value and discount rate

Assignment Help Financial Management
Reference no: EM131014831

What is the value today of $5,000 per year, at a discount rate of 9 percent, if the first payment is received 5 years from today and the last payment is received 15 years from today? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)

Value today        $   

Reference no: EM131014831

Questions Cloud

Specific management and leadership theories : Using Coach Boone or Yoast as an example, identify situations man demonstrated the four functions of management (planning, organizing, leading, and controlling).
What is the product or service being advertised : Persuasion happens all around us every day. Even if we are just passively consuming media, we are surrounded by persuasive messages. Find a TV commercial that you find persuasive and post a link to it, so your classmates can see it to. What is the pr..
Dynamics of organizational compensation plans : What are your thoughts as why the dynamics of organizational compensation plans are changing? How has society influenced the way we compensate employees? What do you believe to be some of the more important employee benefits that could be offered by ..
Rates expected to remain at current levels on into future : Taussig Corp.'s bonds currently sell for $1,150. They have a 6.35% annual coupon rate and a 20-year maturity, but they can be called in 5 years at $1,067.50. Assume that no costs other than the call premium would be incurred to call and refund the bo..
What is the value and discount rate : What is the value today of $5,000 per year, at a discount rate of 9 percent, if the first payment is received 5 years from today and the last payment is received 15 years from today?
What would be the distance traveled by particle : A 200 mm dia particle requires approximately 4 s to solidify during atomization and travels 1 m during this time. What would be the distance traveled by a 40 mm dia particle of the same material before solidification under the same conditions
Calculate fugacity and the fugacity coefficient of phenol : Calculate the fugacity and the fugacity coefficient of phenol in a mixture of 20 mole % phenol (1) and 80 mole % oxygen (2) at 694.2 K and 24.52 bar using the following the ideal gas law.
Asymmetric information exists in the financial markets : Assume that asymmetric information exists in the financial markets. If a firm's earnings fluctuate every year, everything else equal, which if the dividend policies discussed in CH 13 should be followed to provide investors with a perception of the l..
A company issues zero coupon bonds which mature : A company issues zero coupon bonds which mature in 30 years. These bonds can be bought for $99.38 and then pay no annual interest payments, only $1000 at maturity. What is the annual percentage cost of these bonds to the issuing company?

Reviews

Write a Review

Financial Management Questions & Answers

  Risk-cost-politics and public relations

Every company has capital projects. The company you have selected must need something! Be it a new wing to the building, a new product line to be funded, a new piece of equipment, find one new acquisition your company needs. •Risk •Cost •Politics (ge..

  Explain briefly how you would interpret characteristic lines

Write down expressions for the characteristic lines for securities A and B. Draw sketches of the characteristic lines for securities A and B. Explain briefly how you would interpret the characteristic lines.

  Cost of casa de diseno''s operational inefficiency

In terms of resource investment requirements, what is the cost of Casa de Diseno's operational inefficiency - what annual savings will result, assuming the sales remain constant?

  Compute the maximum change in total deposits

Compute the maximum change in total deposits that would result if deposits at financial institutions were immediately increased by $120 billion and the reserve requirement applicable to all deposits was 5%, 10% 50% 100%

  Make the decision to buy the hybrid worthwhile

Hybrid cars are touted as green alternatives; however, the financial aspects of hybrid ownership are not as clear. Consider a hybrid model that has a list price of $5,500 (including tax consequences) more than a comparable car with a traditional gaso..

  Net present value is generally considered to be best method

Given that the net present value (NPV) is generally considered to be the best method of analysis, why could you still use the other methods? You need to use other methods because the net present value method is unreliable when a project has unconvent..

  Should the firm make the investment

Tangshan Mining Company is considering investing in a new mining project. The firm’s cost of capital is 12 percent and the project is expected to have an initial cost of $5,000,000. Calculate the project’s NPV. Should the firm make the investment?

  What are the common stockholders residual claims to earnings

Wrecks Inc. has $20 million in earnings, pays $2.75 million in interest to bondholders, and $1.80 million in dividends to preferred stockholders. a. What are the common stockholders’ residual claims to earnings? b. What are the common stockholders’ l..

  Using the full initial margin

You short sell 500 shares of Yahoo stock at a price of $23 per share, using the full initial margin of 50%. After a surprisingly positive earnings announcement, the stock price rises to $31 per share. Your broker immediately gives you a margin call a..

  Accounting review journal article

Accounting Review journal article (set as one of your readings this semester and available on UTSonline 'Course Documents') "Accruals and the Prediction of Future Cash Flows" Barth, Cram & Nelson.

  Savings bonds and coupon rate

The school you would like to attend costs $100,000. To help finance your education, you need to choose whether or not to sell your 1,000 shares of Apple stock, 1,000 EE Savings Bonds (with $100 denominations and 4.25% coupon rate) that are five years..

  Residual distribution policy

Harris Company must set its investment and dividend policies for the coming year. It has three independent projects from which to choose, each of which requires a $3 million investment. These projects have different levels of risk, and therefore diff..

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