Price of the investment

Assignment Help Corporate Finance
Reference no: EM133123062

An investment promises a return of $400 per year for 10 years, with the first payment occurring a year from now. If the required return is 10% a year, what should the price of the investment be today? What should the price be if the payments occurred for 40 years? What if the payments occurred forever (in perpetuity)?

Reference no: EM133123062

Questions Cloud

How much should wynn company report as revenue : Accounts receivable, December 31, 2020, P1,375,000. Under the accrual basis, how much should Wynn Company report as revenue for 2020
Compute the 60 monthly log returns : Go to assignment2 sheet in the Chapter 3 Excel file. Compute the 60 monthly log returns of S&P 500 using its 61 monthly indices from August 2015 to August 2020,
Effective annual rate of interest on the loan : If the credit card requires monthly payments, what is the effective annual rate of interest on the loan? ( Round answer to 2 decimal places, e.g., 12.25.)
What is the effective annual rate on loan : You want to buy a piece of farm equipment for $70,000 and the finance office has quoted you a loan with an APR of 12% compounded monthly for 60 months to make t
Price of the investment : An investment promises a return of $400 per year for 10 years, with the first payment occurring a year from now. If the required return is 10% a year, what shou
What is the effective annual return friendlys : Friendly's Quick Loans, Inc., offers you $6.00 today but you must repay $8.15 when you get your paycheck in one week (or else).
Profitability and operating performance ratios : Using the profitability and operating performance ratios, discuss what conclusions you can make about each company's profits over the past three years. Support
What are the financial institutions : Suppose a financial manager for Alba plans to borrow BD50 million over the next year.
Estimate capex for expansion : Assume in 2020, the company will increase its production capacity by 50%. Capital Expenditure (CAPEX) or investment for this expansion is estimated at 30% of

Reviews

Write a Review

Corporate Finance Questions & Answers

  Impact of the global economic crisis on business environment

This paper reviews the article of ‘the impact of the global economic crisis on the business environment' that is written by Roman & Sargu (2011).

  Explain the short and the long-run effects on real output

Explain the short and the long-run effects on real output, price, and unemployment

  Examine the requirements for measuring assets

Examine the needs for measuring assets at fair value in accounting standards

  Financial analysis report driven by rigorous ratio analysis

Financial analysis report driven by rigorous ratio analysis

  Calculate the value of the merged company

Calculate the value of the merged company, the gains (losses) to each group of shareholders, NPV of the deal under different payment methods. Synergy remains the same regardless of payment method.

  Stock market project

Select five companies for the purpose of tracking the stock market, preparing research on the companies, and preparing company reports.

  Write paper on financial analysis and business analysis

Write paper on financial analysis and business analysis

  Intermediate finance

Presence of the taxes increase or decrease the value of the firm

  Average price-earnings ratio

What is the value per share of the company's stock

  Determine the financial consequences

Show by calculation the net present value for the three alternatives (no education, network design certification, mba). Also, according to NPV suggest which alternative you advise your friend to choose

  Prepare a spread sheet model

Prepare a spread sheet model for the client that determines NPV/IRR with and without tax.

  Principles and tools for financial decision-making

Principles and tools for financial decision-making. Analyse the concept of corporate capital structure and compute cost of capital.

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