The present value of two years back pay

Assignment Help Financial Management
Reference no: EM131307984

You are serving on a jury. A plaintiff is suing the city for injuries sustained after a freak street sweeper accident. In the trial, doctors testified that it will be five years before the plaintiff is able to return to work. The jury has already decided in favor of the plaintiff. You are the foreperson of the jury and propose that the jury give the plaintiff an award to cover the following: (a) The present value of two years’ back pay. The plaintiff’s annual salary for the last two years would have been $44,000 and $47,000, respectively. (b) The present value of five years’ future salary. You assume the salary will be $51,000 per year. (c) $100,000 for pain and suffering. (d) $23,000 for court costs.

Reference no: EM131307984

Questions Cloud

Management is planning to fund development project : Northrop Real Estate Company management is planning to fund a development project by issuing 10-year zero coupon bonds with a face value of $1,000. Assuming semiannual compounding, what will be the price of these bonds if the appropriate discount rat..
Buying five-year zero coupon bond with face value : Diane Carter is interested in buying a five-year zero coupon bond with a face value of $1,000. She understands that the market interest rate for similar investments is 8.77 percent. Assume annual coupon payments. What is the current value of this bon..
How much additional credit could it obtain : Adams Manufacturing Inc. buys $9 million of materials (net of discounts) on terms of 2/10, net 50; and it currently pays after 10 days and takes the discounts. Adams plans to expand, which will require additional financing. If Adams decides to forgo ..
Effective annual interest rate on lending arrangement : You’ve worked out a line of credit arrangement that allows you to borrow up to $50 million at any time. The interest rate is .50 percent per month. In addition, 4 percent of the amount that you borrow must be deposited in a noninterest-bearing accoun..
The present value of two years back pay : You are serving on a jury. A plaintiff is suing the city for injuries sustained after a freak street sweeper accident. In the trial, doctors testified that it will be five years before the plaintiff is able to return to work. The jury has already dec..
Self-supporting growth rate : Maggie's Muffins, Inc., generated $2,000,000 in sales during 2015, and its year-end total assets were $1,200,000. Also, at year-end 2015, current liabilities were $1,000,000, consisting of $300,000 of notes payable, $500,000 of accounts payable, and ..
When considering the investment potential of a franchise : What are some important steps that should be taken when considering the investment potential of a franchise? what do you think it takes to really have the experience necessary to get involved? Starting with the first point - what kind of knowledge do..
Assuming the yield to maturity remains? constant : Suppose that General Motors Acceptance Corporation issued a bond with 10 years until? maturity, a face value of $1,000?, and a coupon rate of 7.9% ?(annual payments). Assuming the yield to maturity remains? constant, what is the price of the bond imm..
Modigliani and miller dividend policy : Some have argued that, if the firm issues an even higher dividend than expected, it must mean they do not have many profitable, new projects to invest in. Thus the stock price should fall. How would you respond and why?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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