Difference between present and future values

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Reference no: EM132018103

1. What is the difference between present and future values? How would you use present and future value techniques in preparing a long-term financial budget plan? How would various required rates of return affect the decision? Explain your answer

2. What’s the risk premium for the stock at a time when the risk free rate (e.g., T-Bill rate) is 4% and a stock with a beta of 1.5 is expected to yield 16%?

Reference no: EM132018103

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