Decrease the present value of an annuity

Assignment Help Financial Management
Reference no: EM131571120

Which of the following will decrease the present value of an annuity?

The discount rate increases.

The discount rate decreases.

The number of periods the annuity is received increases.

The final payment increases.

Reference no: EM131571120

Questions Cloud

What is the present value of the coupon stream : What is the present value of the coupon stream? What is the present value of the face value?
What is the arbitrage profit per dollar used : Suppose the Japanese yen exchange rate is ¥83 = $1, What is the cross-rate in terms of yen per pound? What is the arbitrage profit per dollar used?
What is the difference in annual inflation rates : What is the difference in the annual inflation rates for the United States and Poland over this period?
Two firms can both obtain cheaper financing using swap : Fixed-rate funding at 4% and floating rate at Libor-1%. Show how these two firms can both obtain cheaper financing using a swap.
Decrease the present value of an annuity : Which of the following will decrease the present value of an annuity?
Calculate vintage return on equity : The total assets to equity ratio for the firm is 2.7. Calculate Vintage’s return on equity.
When is historical data not useful : When is historical data not useful?
What interest payments do bondholders receive each year : What interest payments do bondholders receive each year? What will happen to the bond price if the yield to maturity falls to 6%?
How a pro forma financial statement : Which of the following is not how a pro forma financial statement is used? non-cash expense representing the cost of assets as they lose value over time.

Reviews

Write a Review

Financial Management Questions & Answers

  Prepare an income statement for krugpark in good form

KrugPark produces a popular beverage called odes us which sells for $97 a case. Last year KrugPark sold 170,000 cases, each of which costs $50 to produce. KrugPark incurred selling and administrative expenses of $670,000 and depreciation expense of $..

  What is your initial margin requirement

What is your initial margin requirement? Suppose you buy the stock at the purchase price and repay your broker. What is your return on this short? How high can Toyota go before you receive a margin call? What is the reduction needed to return your ac..

  Calculate best estimate of the power flowing through line

Given the meter characteristics and meter readings telemetered from the meters, calculate the best estimate of the power flowing through the transmission line.

  What are the order costs

Louise Manufacturing uses 2,700 switch assemblies per week and then reorders another 2,700. The relevant carrying cost per switch assembly is $11.00, and the fixed order cost is $1,350. What are the current carrying costs? (Do not round intermediate ..

  What is the book value of the equipment

The Jones Company has just completed the third year of a five-year MACRS recovery period for a piece of equipment it originally purchased for $300,000. What is the book value of the equipment?

  Calculate the expected price of the stock

Your required rate of return is 12%. Calculate the expected price of the stock.

  Price level adjusted mortgage

A price level adjusted mortgage (PLAM) is made with the following terms: Amount=95000, Initial interest rate=4%, Term=30 yrs, Points = 6%. Assuming inflation is expected to be 6% per year for the next five years, what is the payment at the beginning ..

  Calculate the present value of the future cash flow

Calculate the present value of the future cash flow, given the following information: (a) Future Payment: $25,000, (b) Interest Rate: 5%, and (c) Number of Periods: 10.

  About any issues relating to health care coverage

During the period 1960 through the 1990s one never heard very much about any issues relating to health care coverage in the United States.

  About the nonconstant growth

Microtech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect Microtech to begin paying dividends, beginning with a dividend of $0.50 coming 3 years from toda..

  Three years from now is expected to have an interest rate

Suppose that a risk-neutral investor has a choice between buying a one-year bond paying 5 percent today, a two- year bond paying 5.4 percent today, a three-year bond paying 5.8 percent today, or a four-year bond paying 6.2 percent today, a one-year b..

  Average annual return for this asset over specific period

Assume that the returns from an asset are normally distributed. The average annual return for this asset over a specific period was 13.2 percent and the standard deviation of those returns in this period was 41.1 percent. What is the approximate prob..

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