Calculate the present value of these payments

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Reference no: EM131984221

1. Solve by using formula(s): Jill receives payments at the start of each of the next 10 years with $500 paid now (start of year 1). The subsequent payments increase at a rate of 10% each year. Calculate the present value of these payments if EAR = 6%.

2. ABC Company has a cost of equity of 20.77 percent and a pre-tax cost of debt of 8.94 percent. The firm's target weighted average cost of capital is 12.69 percent and its tax rate is 27.68 percent. What is the firm's D/E ratio?

3. You decide to put $10,000 dollars into an account for 10 years at 6% annual interest. After 10 years you want to start withdrawing money as a yearly annuity at 6% annual interest. How much will you receive if you want the annuity to last for 5 years.

Reference no: EM131984221

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