User Account

All Pages

Calculate the annual compound growth rate

Assignment Help Corporate Finance
Reference no: EM132225444

Assignment - The Hamptons Home of a Famed Socialite Hits the Market

"Before there was Paris Hilton, there was Consuelo Vanderbilt Balsan - a Gilded Age heiress and socialite, renowned for her beauty and wealth. Ms. Balsan's onetime Hamptons home was slated to hit the market priced at $38 million with Tim Davis of the Corcoran Group.

Located on Ox Pasture Road in Southampton, the shingle-style home was built around 1910 and is known as "Gardenside" or "Cara-Mia". Ms. Balsan, the great-granddaughter of railroad magnate Cornelius Vanderbilt, owned the house until her death in 1954.

According to public records, the estate is owned by Robert G. Goldstein, executive vice president and president of global gaming operations at Las Vegas Sands Corp, and his wife Sheryl, who purchased the house in 2002 for $17.4 million." (The Wall Street Journal, August 1, 2014, M2)

1. Calculate the annual compound growth rate of the house price during the period when the house was owned by Robert G. Goldstein (since 2002). (Round the number of years to the whole number). Please show your work.

2. Assume that the growth rate you calculated in question #1 remains the same for the next 30 years. Calculate the price of the house in 30 years after it was sold by Robert G. Goldstein. Please show your work.

3. Assume that the growth rate you calculated in question #1 remains the same since the house was sold. Calculate the price of the house today. (Round the number of years to the whole number). Please show your work.

4. Assume the growth rate that you calculated in #1 prevailed since 1910. Calculate the price of the house in 1910. Please show your work.

5. Assume the growth rate that you calculated in #1 prevailed since 1910. Calculate the price of the house in 1954. Please show your work.

6. You were using the time value of money concept to answer question #5. Think about the time line for that problem. What is the time point 0 in that problem? Please explain your answer.

7. Reflection - the students also should include a paragraph in the initial response in their own words reflecting on specifically what they learned from the assignment and how they think they could apply what they learned in the workplace.

Reference no: EM132225444

Questions Cloud

Identify the operative employment and contract laws : Identify the operative employment and contract laws that apply to your company’s case
Provide brief description of lack of ethical expertise : Provide a brief description of "lack of ethical expertise" in relationship to leadership shadow casting and the effect it has in manafacturing enviroments.
Write report on international intermodal : International Intermodals / Hubs - Identify logistics management strategies to resolve any issues related to the operational aspects of the company
Define what you learned from the video : Based on what you learned from the video, the assigned readings by describing your understanding of the the importance of training and development to employees.
Calculate the annual compound growth rate : Calculate the annual compound growth rate of the house price during the period when the house was owned by Robert G. Goldstein (since 2002)
What actually happens based on your own experiences : The "Performance Appraisal" process is intended to measures the degree to which an employee accomplishes work requirements. The performance evaluation process.
Identify key characteristics that drive business decisions : For this assignment, you will use Hofstede's characteristics to differentiate international and domestic business operations. This exercise will help identify.
The VP needs to know if he is right : A Colossal subsidiary in Bartan, an Asian country, wants the company to enter into a sales contract with a subsidiary there, using the UN Convention
Part of effective selling is understanding the competition : Part of effective selling is understanding the competition. Explain why is it Important in understanding the Competition?

Reviews

Write a Review

Corporate Finance Questions & Answers

  Construct a price weighted index

Three (3) stocks have share values of $12, $75, and $30 with total market rates of $400 million, $350 million & $150 million respectively.

  1determine two goals one short term and one long term that

1.determine two goals one short term and one long term that you wish to achieveyou can make up fictional ones if you

  Determine the bid value

Dahlia Enterprises requires someone to supply it with 114,000 cartons of machine screws every year to support its manufacturing needs over the next 5-years, and you've decided to bid on the agreement.

  1aqampq has ebit of 2million total assets of 10000

1.aqampq has ebit of 2million total assets of 10000 stockholders equity of 4 million and pretax interest expense of 10

  What motivates governments to establish so many guarantee

Specify the type of traded goods for which forfaiting is applied ? What is countertrade?- What motivates governments to establish so many guarantee and insurance schemes to aid international trade?

  Deluxe company expects to pay a dividend of $2

Deluxe Company expects to pay a dividend of $2 per share at the end of year-1, $3 pers share at the end of year-2 and then be sold for $32 per share. If the required rate on the stock is 15%, what is the current value of the stock?

  Create a capital budget for the hot new cafe

Prepare a capital budget for the Hot New Cafe with the net cash flows for this project over a 5-year period. Do you think the project should be accepted? Why?

  What policy adjustment is the central bank undertaking

What would happen to inflation and output in the long run if the central bank remained committed to its original inflation target and responded with an immediate policy tightening?

  Explain project assessment methods amazon should have used

Explain the project assessment methods Amazon should have used to assess these projects (IRR, NPV, payback, and ARR). What are the advantages and drawbacks to using each one? (IRR, NPV, payback, and ARR).

  Discuss the merits of bernsteins arguments

Discuss the merits of Bernstein"s arguments and apprehensions regarding reserves and explain how this perspective can be factored into an analysis of past earnings trends, estimates of future earnings, and the valuation of common stock.

  What is the significance of the critical ebit

What is the significance of the critical EBIT? Can we use it to make the capital acquisition decision?Can the EBIT be used as a reference for an investor when deciding to acquire a company?

  Assumptions of the capital asset pricing model

Consider a world where the assumptions of the Capital Asset Pricing Model hold. How are agency costs controlled in a "CAPM world?" and How can the financial markets reduce the total agency costs of the firm?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd