End of the period is reinvested the next period

Assignment Help Financial Management
Reference no: EM131850211

1. What is the present value of the following annuity? $4,572 every half year at the beginning of the period for the next 9 years, discounted back to the present at 7.11 percent per year, compounded semiannually.

2. A firm’s dividends have grown over the last several years. 8 years ago the firm paid a dividend of $1. Yesterday it paid a dividend of $7. What was the average annual growth rate of dividends for this firm?

3. You placed $6,428 in a savings account today that earns an annual interest rate of 4.61 percent, compounded semiannually. How much will you have in this account at the end of 9 years? Assume that all interest received at the end of the period is reinvested the next period.

Reference no: EM131850211

Questions Cloud

Computer-based order entry system : Your firm is contemplating the purchase of a new $772,800 computer-based order entry system.
Calculate the net cash outlay and operating cash flows : You are going to start a new business selling hot dogs from hot dog cart. Calculate the net cash outlay, the operating cash flows.
Provide narrative explaining the book value method : Provide a narrative explaining the market capitalization method. Provide a narrative explaining the book value method.
Find the present value of these cash flows : You are going to withdraw $78,203 every year at the end of the year for the next 18 years. find the present value of these cash flows.
End of the period is reinvested the next period : How much will you have in this account at the end of 9 years? Assume that all interest received at the end of the period is reinvested the next period.
How long will it take to reach your goal : Upon graduating from college, you make an annual salary of $51,035. how long will it take to reach your goal?
Primarily on developing new internet-based projects : Harry Davis is interested in establishing a new division that will focus primarily on developing new Internet-based projects.
Business strategy game summary report : Please provide an example of the business strategy game summary report.
Expected return and standard deviation of market portfolio : What are the expected return and standard deviation of the market portfolio?

Reviews

Write a Review

Financial Management Questions & Answers

  What would be the exhange rate between the dollar and pound

Undre the gold standard , the price of an ounce of gold in US odallars was $20.67, will the price of that same ounce in British pounds was 3.7683. What would be the exhange rate between the dollar and the pound if the US doallar price had been $42.00..

  Calculate the monthly debt repayment amount

Calculate the monthly debt repayment amount. Determine how much excess income Jon will have each month after making these payments.

  Replacement chains?-npv of remodeling the existing hotel

Destination Hotels currently owns an older hotel on the best beachfront property on Hilton Head? Island, The NPV of remodeling the existing hotel is

  The probability that any stock increases in price

Suppose that the probability that any stock increases in price (over a 3 month period of time) is 60%. What is the probability that in a sample of 120 stocks that you buy that at least 65% increase in price (over a 3 month period of time)?

  Discuss how efficient market hypothesis-heuristic behaviors

Discuss how efficient market hypothesis, heuristic behaviors, and biases shape the investment decision-making process in formulating an objective portfolio.

  Corporation and partnership producing same goods

Under what circumstances might we see both corporation and partnership producing same goods-services in the light of these required before-tax rates of return?

  Pricing a first to default derivative

Examine the sensitivity of your answers as you vary the number of simulations from 1000, 10,000, 100,000 and 250,000, Pricing a Second to Default Derivative - Pricing a Second to Default Derivative

  Create a simple monthly cash budget

Step I: Assume you are thinking about starting a business and would like to forecast your cash needs for the next six months. You expect sales to be approximately $30,000 per month for the first 12 months and your purchases to support sales will be a..

  What is difference between a european and an american option

What is the difference between a European and an American option?

  Calculate the npv and eac for each machine.

Vandalay Industries is considering the purchase of a new machine for the production of latex. Machine A costs $3,132,000 and will last for six years. Variable costs are 35 percent of sales, and fixed costs are $270,000 per year.

  Equivalent cost of owning and operating the forklift

A forklift will last for only 2 more years. It costs $5,300 a year to maintain. For $23,000 you can buy a new lift that can last for 10 years and should require maintenance costs of only $2,300 a year. The equivalent cost of owning and operating the ..

  Determine the depreciation and book value for the hogs

Determine the depreciation and book value for the hogs for the first 3 years of ownership using the following depreciation methods.

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