How much would you have to pay for this busniess today

Assignment Help Finance Basics
Reference no: EM13618925

You want to purchase a business with the following cash flows:

a. year one $100,000

b. year two $150,000

c. year three $200,000

d. year four $ 250,000

How much would you have to pay for this busniess today assuming you need a 14% retuen to make this deal?

Reference no: EM13618925

Questions Cloud

The real risk-free rate is expected to remain constant at 3 : the real risk-free rate is expected to remain constant at 3. inflation is expected to be 4 a year for the next four
Genes art gallery is notoriously known as a slow-payer the : genes art gallery is notoriously known as a slow-payer. the firm currently needs to borrow 27900 and only one company
Two firms a amd b have 1000 par value bond issues : two firms a amd b have 1000 par value bond issues outstanding that have the same maturity 20 years and risk. firm as
Marie snell recently inherited some bonds face value 100000 : marie snell recently inherited some bonds face value 100000. marie wantsto cash in the bonds. the 2 annual coupon
How much would you have to pay for this busniess today : you want to purchase a business with the following cash flowsa. year one 100000b. year two 150000c. year three 200000d.
A project has a 056 chance of doubling your investment in a : a project has a 0.56 chance of doubling your investment in a year and a 0.44 chance of halving your investment in a
Two firms a and b have 1000 par value bond issues : two firms a and b have 1000 par value bond issues outstanding that have the same maturity 20 years and risk. firm as
In the analysis done so far we have not considered the : balance sheet 2010type of financingbonds 8 1000 par 30-year
What is an example of a marketing mix that has a high : what is an example of a marketing mix that has a high price level but you see it as having good value? explain in

Reviews

Write a Review

Finance Basics Questions & Answers

  How much would these bonds sell for today

Assume that Brady Corp. has an issue of 18-year $1,000 par value bonds that pay 7% interest, annually. Further assume that today's required rate of return on these bonds is 5%. How much would these bonds sell for today? Round off to the nearest $1

  What is difference between ccc expected roe

what is difference between CCC's expected ROE if it finances with 50% debt versus its expected ROE if it finances entirely with common stock?

  What is its role in the local investments markets

Identify the principal financial institution in Puerto Rico. • what is its role in the local investments markets?

  Explain what the capm is all about in terms of expected

while your financial consulting partnership has the most up to date software for among other things portfolio analysis

  You notice that dell computers has a stock price of 2785

you notice that dell computers has a stock price of 27.85 and eps of 1.26. its competitor hewlett-packard has eps of

  What will the price be in 6 years

The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.40 per share on its stock. The dividends are expected to grow at a constant rate of 8 percent per year indefinitely.

  What is the maximum that should be paid to replace

A used machine costs$100,000 annually to run. What is the maximum that should be paid to replace the machine with one that will last 3 years and cost only $4,000 annually to run? The opportunity cost of capital is 12%

  Find annual interest on your investment

Consider you're starting from zero now and you earn 10% find annual interest on your investment

  What is a lower bound for the price of a 4-month call

1. What is a lower bound for the price of a 4-month call option on a non-dividend -paying stock when the stock price is $43.77, the strike price is $36, and the risk-free interest rate is 5% per annum?

  Calculate the value of the ending inventory

Calculate the value of the ending inventory and the value of the inventory used (the inventory expense) for the year using both the FIFO and LIFO methods.

  A portfolio of nondividend-paying stocks earned a geometric

a portfolio of nondividend-paying stocks earned a geometric mean return of 5 between january 1 2005 and december 31

  Short-term loan interest rates

Why are interest rates on the short-term loans not necessarily comparable to each other? Provide three possible reasons.

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