Discounted cash flow problem

Assignment Help Financial Management

Reference no: EM131448347

Solve following Discounted Cash Flow (DCF) Problem: In late 2013, catcher Brian McCann signed up at $85 million. At the same time Jacob Ellsbury signed up at $153 million. Signing up at the same time was Clayton Kershaw whose remuneration amounted to $215 million as scheduled below:

Signing bonus $18 million

End of 2014, $4 million

End of 2015, $30 million

End of 2016, $32 million

End of 2017, $33 million

End of 2018, $33 million

End of 2019, $32 million

End of 2020, $33 million

Assuming that Clayton is happy with a nominal interest rate (that always includes inflation rate) of 12%, which player was paid highest remuneration?

Reference no: EM131448347

Questions Cloud

What is your estimate of the stocks current price : A company currently pays a dividend of $3.75 per share (D0 = $3.75). It is estimated that the company's dividend will grow at a rate of 24% per year for the next 2 years, then at a constant rate of 8% thereafter. The company's stock has a beta of 0.8..

What is your annualized holding period return : You purchased 300 shares of General Electric stock at a price of $63.40 four years ago. You sold all stocks today for $70.56. During that period the stock paid dividends of $3.60 per share. What is your annualized holding period return (annual percen..

What is the yield to call : New Homes has a bond issue with a coupon rate of 5.5 percent that matures in 12.5 years and is callable in 8.5 years. The bonds have a par value of $1,000 and a market price of $972. Interest is paid semiannually. What is the yield to call?

Direct financing between surplus and deficit units : How does financial intermediation often provide a better alternative to direct financing between surplus and deficit units? Explain how the Fed lowers and raises the federal funds rate. interest rates are rising. Explain how this would impact a negat..

Discounted cash flow problem : Solve following Discounted Cash Flow (DCF) Problem: In late 2013, catcher Brian McCann signed up at $85 million. At the same time Jacob Ellsbury signed up at $153 million. Assuming that Clayton is happy with a nominal interest rate (that always inclu..

Ethics codes help companies to keep standardized way : Ethics Codes help companies to keep a standardized way to take decision else the decision can be biased. Unethcial behaviors can damage the reputation od the company. Also if companies do not take strong measures against these then these can have neg..

Describe the current economic climate in the countries : You have $100,000 in cash and are charged with building a portfolio consisting of bond only. There are no restrictions. You can invest in bond from anywhere in the world. Economic Climate – Describe the current economic climate in the countries or re..

Determine the required rate of return : Try to determine the required rate of return on Tilden Woods Corporation’s common stock. The firm’s beta is 1.22. The rate on a 10-year Treasury bond is 3.41 percent, and the market risk premium is 8.28 percent. Round the answers to two decimal place..

What is the current price or value per share : A publicly traded firm just paid out a dividend (assume t=0 on the timeline) of $4/share, and it will continue to pay dividends forever. What is the current price or value per share if its equity cost of capital is 10% per year and the dividends will..

User Account

All Pages