Annual rate implied from the past and expected values

Assignment Help Financial Management
Reference no: EM132071397

3 year(s) ago, Fatima invested 5,940 dollars. In 1 year(s) from today, she expects to have 7,610 dollars. If Fatima expects to earn the same annual return after 1 year from today as the annual rate implied from the past and expected values given in the problem, then in how many years from today does she expect to have exactly 12,390 dollars? Round your answer to 2 decimal places.

Reference no: EM132071397

Questions Cloud

What is the total market value of the firm without leverage : What is the total market value of the firm without leverage? What is the value of your share of the firm's equity in cases a and b?
Trade credit is lower than the bank interest rate : Which of the following strategies should cash-strapped firm adopt if the effective interest rate charged on trade credit is lower than the bank's interest rate?
Expected annual return for investment : Sasha owns two investments, A and B, that have a combined total value of 36.300 dollars. What is R, the expected annual return for investment B?
Suitable cost estimation technique for your term project : Critically describe five cost estimation techniques, explain with reasons the most suitable cost estimation technique for your term project.
Annual rate implied from the past and expected values : If Fatima expects to earn the same annual return after 1 year from today as the annual rate implied from the past and expected values given in the problem,
Estimate of the combined welfare of the two professors : Consider two university professors who are on nine-month contracts. hat is your best estimate of the combined welfare of the two professors?
Calculate the npv of fcf associated with each alternative : Beryl's Iced Tea currently rents a bottling machine for $ 55,000 per year, Calculate the NPV of the FCF associated with each alternative.
What is monthly lease car payment : You receive a $35,000 car LEASE at 6% nominal annual for 60 months. What is your monthly LEASE payment?
What is the market value of this firm : The legal problems are personal and unrelated to the actual business. What is the market value of this firm?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the company cost of preferred stock and rp

The stock would pay a constant annual dividend of $6.00 a share. What is the company's cost of preferred stock, rp?

  About the bond valuation

Callaghan Motors' bonds have 19 years remaining to maturity. Interest is paid annually, they have a $1,000 par value, the coupon interest rate is 6%, and the yield to maturity is 8%. What is the bond's current market price?

  What is the contribution margin per unit

If the company has $175,000 in variable expenses, and $85,000 in Fixed expenses, what is the contribution margin per unit?

  Drive the financial planning process

Determine the key factors that will drive the financial planning process for most organizations in the post-merger phase, and examine the related impact to the organization process. Provide support for your rationale.

  What is the firms net operating working capital

The assets of Dallas & Associates consist entirely of current assets and net plant and equipment. The firm has total assets of $2.6 million and net plant and equipment equals $2.1 million. It has notes payable of $140,000, long-term debt of $745,000,..

  Setup violates the no-arbitrage assumption

You have a stock in the one-period binomial model such that S0= 4, S1(H) = 8, S1(T) = 2,and r= 1.5. Show that this setup violates the no-arbitrage assumption.

  What will annual loan payment

Dinero Bank offers you a $51,000, six-year term loan an annual interest rate of 8 percent. What will your annual loan payment be?

  Calculate the charitable contribution allowance

Salem realizes the importance of being a good corporate citizen and makes general contributions to worldwide charitable organizations. For 2009, Salem wants to contribute $1,500,000 to various charities. Based on 2008 tax laws, if Salem’s taxable inc..

  What is the discounted payback period

A project has an initial cost of 8,600 and provides cash inflows of 2,600, 5,100, and 1,600 over the next three years, respectively. What is the discounted payback period if the required rate of return is 7 percent?

  Discuss how someone earning the average wage

Discuss how someone earning the average wage would make ends meet?

  They hedge their won and dollar exposure

On January 3d, 2007, Daimler-Chrysler expects to ship 10,000 cars from its Hyundai affiliated plant in Korea to the US, which it will sell through its US dealers on 240-day terms at $10,000 each. What is one other way they might they hedge their won/..

  What is this project equivalent annual cost

A five-year project has an initial fixed asset investment of $320,000, an initial NWC investment of $32,000, and an annual OCF of −$31,000. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required re..

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