Solution-Present value of growing perpetuity

Present value of growing perpetuity

Reference no: EM131412210

You are evaluating a growing perpetuity product from a large financial services firm. The product promises an initial payment of $20,000 at the end of this year and subsequent payments that will thereafter grow at a rate of 0.02 annually. If you use a discount rate of 0.09 for investment products, what is the present value of this growing perpetuity?

Reference no: EM131412210

Questions Cloud

Why teredo was developed : Prepare a two-page memo that outlines why Teredo was developed, how it is implemented in Windows operating systems, for which types of networks it is appropriate, and how long it should be implemented.

Elements of an emergency response plan : How often should training be provided-annually or quarterly - Which healthcare professionals should be a part of the emergency response team? Why?

Record five sample proportions for each sample size : Using the same bead color, repeat the procedure of step 1 for samples of size- 20, 40, 80, 100- Make sure you record five sample proportions for each sample size; give the results to your instructor.

Process of controlling behavior by manipulating : Operant conditioning is the process of controlling behavior by manipulating its consequences. Suppose you assign the least desirable tasks to a worker until he performs well and only then assign him the desired assignments he wants. This OB Mod strat..

Present value of growing perpetuity : The product promises an initial payment of $20,000 at the end of this year and subsequent payments that will thereafter grow at a rate of 0.02 annually. If you use a discount rate of 0.09 for investment products, what is the present value of this ..

Construct dot plots of the five sample proportions : Construct dot plots of the five sample proportions for each sample size on a single real number line. You may want to use different symbols for the different sample sizes. Do you see any pattern emerging?

Construct dot plots of sample proportions for sample size : Your instructor will now provide the data from all teams. Using a graphing calculator or computer, construct dot plots of the sample proportions for each sample size.

Identify invention or prewriting strategy : Identify and use at least 1 invention or prewriting strategy (mind mapping, brainstorming, listing, freewriting, etc.) and Develop a thesis statement and 3 strong supporting subtopics.

What is the yield to maturity at a current price : Heyman company bonds have 4 years left to maturity.interest is paid annually and the bonds have $1000 par value and the coupon rate of 9%. a. What is the yield to maturity at a current price of(1) $829 and (2)$1104?

User Account

All Pages

Present value of growing perpetuity

Reference no: EM131412210

Reference no: EM131412210

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

Financial reporting and analysis

A report on financial accounting

Describe the types of financial ratios

Differences between sole proprietorship and corporation

Prepare a cash budget statement

What are the implied interest rates

State pricing theory and no-arbitrage pricing theory

Small business administration

Effect of financial leverage

Evaluate the basis for the payment to the lender

Importance of opps, ipps, mpfs and dmepos

Time value of money

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT