Find what is the minimum sales price

Assignment Help Econometrics

Reference no: EM13188131

Fred Smith owns a British Consul, a security which pays the equivalent of $1000 U.S. each year on September 15, forever. Fred has recently considered selling the security. The current interest rate is 10%

a. What is the minimum sales price he must be offered to should consider selling the Consul, after Sept. 15?

b. Joe Miller offers to purchase the Consul, but wants to buy it on Sept. 14. Should Fred change his price in (a)? If so, why and what price should he charge?

Reference no: EM13188131

Questions Cloud

What were the profits attributable : Joe Holiday operated a business renting beach umbrellas this past summer. He operated the concession for 3 months. Joe knew that rain was frequent along this stretch of beach, but he was luck and enjoyed 60 rentable days this season. On each renta..

Use the empirical rule : Use the Empirical Rule to find what two values 99.7% of the data will fall between for a data set with a mean of 287 and standard deviation of 14.

Methodology to develop software applications : What needs to be considered in devising a company's policy for selecting a methodology to develop software applications?

State transition metal complex with the formula : Five potential structures belonging to point groups Oh,D3h,D6h,D2h and D3d. Sketch geometries that are consistent with the possible point groups?

Find what is the minimum sales price : Fred Smith owns a British Consul, a security which pays the equivalent of $1000 U.S. each year on September 15, forever. Fred has recently considered selling the security. The current interest rate is 10% a. What is the minimum sales price he must..

Explain four different potential pathways : Describe four different potential pathways that can utilize pyruvate as a substrate. Show all of the pathways (draw them out) and what the final fate of pyruvate is in the respective pathway

Compare the quality of commercial proprietary code : Compare the quality of commercial proprietary code with open-source code. These comparisons should consider implementations of the same functionality.

State what common mono-positive ions will coprecipitate : What common mono-positive ions will coprecipitate with barium sulfate in the determination of soluble sulfate

Will it be possible to bribe the employee not to do work : A firm in a perfectly competitive market invents a new method of production that lowers marginal costs. What happens to its output? What happens to the profit it receives and the price it charges a. The firm has an employee who threatens to tell a..

User Account

All Pages