Total value of the payments

Assignment Help Finance Basics
Reference no: EM133123070

Winners of the Dream a Dream Lotto draw receive the winning amount divided equally over 20 years, payable at the beginning of each year. The payment amount is determined by discounting the winning amount at 7 percent interest compounded quarterly. This week, the lottery is worth $6 million to a single winner. What would be the total value of the payments today if there is a single winner?

Reference no: EM133123070

Questions Cloud

What is the firm dividend yield : A firm has a stock price of $25.00 per share. The last dividend was $2.50. The long run growth rate for the company is a constant 3.50%. What is the firm's divi
Design a portfolio of securities for a balanced investor : 1. Design a portfolio of securities for a Balanced Investor Profile (60% equities and 40% Fixed Income as a rough approximation)
Discuss the positions of various stakeholders : 1. Describe the activities of Nelson Peltz and the role he played in laying the groundwork for the acquisition by Berkshire Hathaway and 3G.
Explain the intrinsic value : Explain the intrinsic value, minimum and maximum values of calls and puts. Also Explain the range of factors that affect the price
Total value of the payments : Winners of the Dream a Dream Lotto draw receive the winning amount divided equally over 20 years, payable at the beginning of each year. The payment amount is d
What is your understanding of the who definition : What is your understanding of the WHO definition of health? What current lifestyle practices do you employ to ensure your own physical wellbeing
Calculate the 2-year par yield : Calculate the 2-year par yield.
What are the best-case and worst-case npvs : Suppose you feel that the values are accurate to within only ±10 percent. What are the best-case and worst-case NPVs? (Hint: The price and variable costs for th
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

Reviews

Write a Review

Finance Basics Questions & Answers

  Should lender press for a different loan pricing arrangement

Five weeks ago, RJK Corporation borrowed from the commercial finance company that employs you as a loan officer.

  What is the yield to maturity of this bond

The bond has a coupon rate of 6.3 percent paid annually and matures in 19 years.

  Modern artifacts can produce keppsakes

Modern artifacts can produce keppsakes

  Preparation of budget for day care by municipality

Prepare the baseline 2000 monthly budget for the daycare. (You can assume a calendar year.) Determine the total surplus and deficit for each month

  Calculate the expected standard deviation on stock

Calculate the expected standard deviation on stock: State of the economyProbability of the statesPercentage returns

  Discuss the empirical evidence on effect of exchange rate

Discuss the empirical evidence on the effect of exchange rate uncertainty on the risk of foreign investment.

  Evaluate the persuasiveness of mazzucato arguments

Question: Evaluate the persuasiveness of Mazzucato's arguments in The Value of Everything (2018) using the concepts outlined in Chapter 6 of the Critical Thinki

  Hiring a proper advisor with fiduciary responsibility

Imagine that you are the CFO of a SME (Small to Medium Size Enterprise) seeking a financial advisor to oversee the firms 401k and 401a profit sharing plans and defined benefit plan for the growing 250 employee participants. You will need to make y..

  Multiple choice questions on equity valuation and wacc1

multiple choice questions on equity valuation and wacc.1. nbspnbspassume that mary brown inc. hired you as a consultant

  Compute amount of new investment

Associated Breweries is considering to market unleaded beer. The finance the venture, it proposes to make a right issue with a subscription price of 10 One new share can be buy for each two shares held.

  What is the value of the cash coverage ratio

A firm has sales of $4,750, costs of $2,775, interest paid of $150, and depreciation of $400. The tax rate is 34 percent.

  What is p0

The dividend is expected to grow at a 5% annual rate. The return on equity for similar stocks is 14%. What is P0?

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