Compute the present value of a perpetuity

Assignment Help Finance Basics
Reference no: EM131974458

Question: Find the present value of a perpetuity that pays $3800 every three years starting seven years from now. Assume the perpetuity has an annual effective rate of interest of 8.9%. The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

Reference no: EM131974458

Questions Cloud

Shift in demand or supply : Think about a good or service for which you believe there has been a shift in demand or supply.
Company uses straight voting : how much will it cost you to buy a seat if the company uses straight voting?
World economic forum is a free worldwide association : World Economic Forum is a free worldwide association, whereas the Heritage Foundation is an exploration and instructive organization
Find the profitability index for series of future cash flows : Find the profitability index (PI) for the following series of future cash flows, assuming the company's cost of capital is 10.61 percent.
Compute the present value of a perpetuity : Find the present value of a perpetuity that pays $3800 every three years starting seven years from now. Assume the perpetuity has an annual effective rate.
Find the after-tax return to a corporation : Find the after-tax return to a corporation that buys a share of preferred stock at $33, sells it at year-end at $33, and receives a $3 year-end dividend.
Mismatch in duration between its assets and liabilities : Depository institutions generally have a mismatch in duration between its assets and liabilities.
Find the unpaid balance on the debt : Find the unpaid balance on the debt. (Round your answer to the nearest cent.) After 5 years of monthly payments on $150,000 at 5% for 25 years.
Calculate the present value of net benefits assuming : Calculate the present value of net benefits assuming that the benefits are realized at the end of each of the three years.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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