Assess the present value of the cash flow stream

Assignment Help Financial Management
Reference no: EM131050504

A second way to assess the 100-year bond is to consider a $100m 30 year issue with a 5% rate. The present value of this cash flow stream is $100m, using a 5% discount rate. Suppose you use 5% as the discount rate to assess the present value of the cash flow stream of the 100- year issue. How many years would it take to reach $100m in present value?

Reference no: EM131050504

Questions Cloud

Examples of transferability or portability of leadership : Could an outstanding leader in one organization move into an entirely different organization and still be an outstanding leader? For example, could a great football coach with evident leadership abilities be hired as a CEO of a large company such as ..
What is the present value of the same annuity due : If the present value of an ordinary, 7-year annuity is $7,400 and interest rates are 8.5 percent, what’s the present value of the same annuity due?
Ratio of market value per share to book value per share : The Holtzman Corp has assets of $400,000, current liabilities of $50,000, and long term liabilities of $100,000. There is $40,000 in preferred stock outstanding; 20,000 shares of common stock have been issued. Compute book value (net worth) per share..
Explain whether advertisement meets your ethical standards : By using the material in the New Mexico Media Literacy Project, think about examples of commercials you have seen lately and explain which persuasive tactics the advertisement uses. Also, explain whether the advertisement meets your ethical stand..
Assess the present value of the cash flow stream : A second way to assess the 100-year bond is to consider a $100m 30 year issue with a 5% rate. The present value of this cash flow stream is $100m, using a 5% discount rate. Suppose you use 5% as the discount rate to assess the present value of the ca..
The strategic objectives of the company : (i) The board of a company decides that the strategic objectives of the company should be: to become established as the best in its field to be the largest in its market.
Evaluate the soundness of the company financial policies : Complete an Analysis for Check-N-Go by creating a data report from its annual report. you will analyze the strengths and weaknesses of the Check-N-Go and write a report recommending whether or not to purchase the company stock. Evaluate the soundness..
Elaborate the functions of ecosystem : Elaborate the functions of ecosystem?
Identify an example of persuasion : Identify an example of persuasion that you have encountered and break it down into the steps of the Toulmin Format at described on pages 251-253 of the text. If you have not encountered a type of persuasion that fits into this format, you can dev..

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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