Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

PV of multiple cash flows: Jack Stuart has loaned money to his brother at an interest rate of 5.75 percent. He expects to receive $625, $650, $700, and $800 at the end of the next four years as complete repayment of the loan with interest. How much did he loan out to his brother? (Round to the nearest dollar.)

PV of multiple cash flows: Hassan Ali has made an investment that will pay him $11,455, $16,376, and $19,812 at the end of the next three years. His investment was to fetch him a return of 14 percent. What is the present value of these cash flows? (Round to the nearest dollar.)

PV of multiple cash flows: Pam Gregg is expecting cash flows of $50,000, $75,000, $125,000, and $250,000 from an inheritance over the next four years. If she can earn 11 percent on any investment that she makes, what is the present value of her inheritance? (Round to the nearest dollar.)

Bond price: Briar Corp is issuing a 10-year bond with a coupon rate of 7 percent. The interest rate for similar bonds is currently 9 percent. Assuming annual payments, what is the present value of the bond? (Round to the nearest dollar.)

PV of dividends: Cortez, Inc., is expecting to pay out a dividend of $2.50 next year. After that it expects its dividend to grow at 7 percent for the next four years. What is the present value of dividends over the next five-year period if the required rate of return is 10 percent?

PV of dividends: Givens, Inc., is a fast growing technology company that paid a $1.25 dividend last week. The company's expected growth rates over the next four years are as follows: 25 percent, 30 percent, 35 percent, and 30 percent. The company then expects to settle down to a constant-growth rate of 8 percent annually. If the required rate of return is 12 percent, what is the present value of the dividends over the fast growth phase?

 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M924979

Have any Question? 


Related Questions in Basic Finance

Everrest incs stock has a 53 chance of producing a 1425

Everrest Inc.'s stock has a 53% chance of producing a 14.25% return, a 25% chance of producing a 27.50% return, and a 22% chance of producing a -4.25% return. What is the firm's expected rate of return?

You are considering a new product launch the product will

You are considering a new product launch. The product will cost $1,700,000, have a 4-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 140 units per year; price per unit ...

Mgs corporation is expected to generate cash flows 109

MGS Corporation is expected to generate cash flows $10.9 million per year.MGS Corporation has a personal debt of $40 million at 5% cost,a tax rate of 26% and an unlevered cost of capital of 10%. (a) Calculate the value o ...

Fifty percent of all technical assistants would like to

Fifty percent of all technical assistants would like to have a PC. Eighty percent of all technical assistants would like to have MAC. Fourty-five percent of all technical assistants would like to have both. If a technica ...

You want to have an 80000 college fund in 14years how much

You want to have an$ 80,000 college fund in 14years. How much will you have to deposit now under the scenario below. Assume that you make no deposits into the account after the initial deposit. An APR of 6%compounded dai ...

The past five monthly returns for kohls are 386 percent 442

The past five monthly returns for Kohl's are 3.86 percent, 4.42 percent, -2.00 percent, 9.41 percent, and -2.88 percent. Compute the standard deviation of Kohls' monthly returns. (Do not round intermediate calculations a ...

Case study - john simpsonbackgroundjohn has been a

Case study - John Simpson Background John has been a self-employed carpenter for 10 years, and operates his business under a company structure. He has approached you for help in arranging finance for a potential purchase ...

You must show your work for all of the problems1 you have

You must show your work for all of the problems. 1. You have accumulated $508,894 for your retirement. How much money can you withdraw for the next 25 years in equal annual end-of-the-year cash flows if you invest the mo ...

What does investment spending consist ofhow is investment

What does investment spending consist of? How is investment spending related to the interest rate? Which is more volatile, consumption or investment? Which makes up a larger component of GDP?

Opti-net has a cost of goods sold cogs of 57 they are

Opti-Net has a Cost of Goods Sold (COGS) of 57%. They are considering opening another officeat a cost of $22,000 per month. If they have an average revenue of $70 per sale and they only sellone in five customers, what wo ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate