How much greater would its future value be

Assignment Help Finance Basics
Reference no: EM132049244

An investment of $4,000 today is compounded at a nominal annual rate of 9% for a period of 7 years. If it could be compounded continuously instead of annually, how much greater would its future value be?

Reference no: EM132049244

Questions Cloud

Debt and the balance is common equity : The target capital structure consists of 35% debt and the balance is common equity.
Write an analysis of the purchasing process : BUS4024 - Customer Behavior - capella university - Select a current or previous employer and briefly describe the organization and its main business
How much will the teacher have in principal : How much will the teacher have in principal and interest at the end of the 5 years?
Concerning stock-call option and put option : You obtain the following information concerning a stock, a call option, and a put option:
How much greater would its future value be : If it could be compounded continuously instead of annually, how much greater would its future value be?
The firm cost of equity from retained earnings : What is an estimate of the firm's cost of equity from retained earnings?
What is the project terminal cash flow : The firm's corporate tax rate is 40%. What is the project's Terminal Cash Flow?
What is her holding period return for the year : One year later, when yields have fallen to 2%, she collects the annual coupon and sells the bond. What is her holding period return for the year?
Cost of new stock exceed the cost of retained earnings : By how much would the cost of new stock exceed the cost of retained earnings?

Reviews

Write a Review

Finance Basics Questions & Answers

  Jaedan industries has the following account balances as of

jaedan industries has the following account balances as of december 31 2010. the firms dividend payout ratio is 25 and

  An investor who requires a 10 rate of return on an

an investment is expected to return 1200 per year indefinitely. an investor who requires a 10 rate of return on an

  Relationship between the interest rate and the npv

Evaluate the following two cash flow streams using the PP, ROI, NPV, and IRR. Assume a MARR of 8%. Plot a graph showing the relationship between the interest rate and the NPV. Provide an interpretation of your calculations and graph.

  Existence of anomalies in financial markets

What does the existence of anomalies in financial markets say about their efficiency?

  What will be the company cost of capital per car

Assume that a car-rental company buys cars for $ 20,000 each and rents them out to other businesses. The company faces a nominal interest rate of 10 percent.

  Expected net winnings for single ticket

The chance of winning a lottery game is 1 in approximately 25million. Suppose you buy a $1 lottery ticket in anticipation of winning the $4 million grand prize. Calculate your expected net winnings for this single ticket. Interpret the result.

  Find expected dividend payout ratio

Calculation of Dividend Payout ratio - If the firm follows a residual dividend policy and has no other projects, what is its expected dividend payout ratio?

  Determine the average inventory

Corporation ABC has expected sales of 12,000 units this year, an ordering cost of $6 per order and carrying costs of $1.60 each unit. Determine the average inventory?

  Describe the change from the current and prior years

Briefly describe the change from the current and prior years in each of these key areas and determine if the changes would be positive or negative from an investor / stockholder's view.

  Morningside nursing homea not-for profit corporationis

morningside nursing homea not-for profit corporationis estimating its corporate cost of capital.its tax-exempt debt

  Signifies about financial statements

1. Discuss what the auditor's report signifies about financial statements.

  Commercials suggesting that buying gold

Discuss the following question: Commercials suggesting that "buying gold" would be a wise decision are commonly aired. Explain the difference between "hedging" and "speculating" by explaining why someone who wishes to "hedge" against inflation mig..

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