What if the present value of a perpetuity

Assignment Help Other Subject
Reference no: EM132393507

What if the present value of a perpetuity of $100 per year if the appropriate discount rate is 7 percent? Suppose that interest rates doubles in the economy and the appropriate discount rate is now 14%. What would happen to the present value of the perpetuity?

Reference no: EM132393507

Questions Cloud

Investment geometric mean periodic return : A 10-period investment provides an investor with a continuously compounded return of 78.8457%. What is this investment's geometric mean periodic return?
Key feature of a managed investment : A key feature of a managed investment is that it is a (choose: group/pooled/indirect) arrangement, in relation to investments funds
Borrowing and lending with financial markets : Illustrate the position of a "borrower" in the capital markets in the context of the two-period investment-consumption model.
Construct a three-period binomial tree for evolution : Please provide detailed steps including how you got each number.Include the formulas.
What if the present value of a perpetuity : Suppose that interest rates doubles in the economy and the appropriate discount rate is now 14%. What would happen to the present value of the perpetuity?
What is the market expectation of the yield curve : According to the expectations hypothesis, what is the market's expectation of the yield curve one year from now? Specifically, what are the expected values
Development of children during early childhood : Discuss scripts and their importance in the cognitive development of children during early childhood?
How does six steps for successful service learning : How does Six Steps for Successful Service Learning helps service learning list of ideas?
Potential explanations for the individual differences : What are some potential explanations for the individual differences we see in vocabulary acquisition during toddlerhood?

Reviews

Write a Review

Other Subject Questions & Answers

  Different types of seafloor sediments

What are the different types of seafloor sediments, and what are the factors that control the distribution of each major sea sediment type?

  Direct marketing help with relationship marketing issues

How does direct marketing supply an organization's integrated marketing communications plan?

  Choose an organization or department of your choice your

select an organization or department of your choice. your task is to develop a mission statement. the mission statement

  Extra attention to the historical background

This discussion continues the discussion of heroes, but also entails focus on how this epic illustrates Roman values and Roman achievement.

  Describe the diagnosis and staging of cancer

Write a paper (1,750-2,000 words) describing the approach to care of cancer. In addition, Describe the diagnosis and staging of cancer.

  Analyze primary ways in which key federal initiative impact

Analyze the primary ways in which the key federal initiatives impact the standards of health care information for patient privacy, safety, and confidentially.

  Explain how you currently use social media

Explain How you currently use social media and what you think about the benefits and risk mentioned in the readings. Why do you think you have that perspective?

  Create a personality profile based on your current knowledge

Create a personality profile based on your current knowledge of your chosen subject using the framework of your selected domain.

  Validity and reliability of the test

How large is the normative sample, what clinical groups are included, what is the validity and reliability of the test, what types of scores and scales are provided, etc.?

  Identify standard screening and assessment instruments

Identify standard screening and assessment instruments for substance use and related disorders. Develop appropriate treatment plans incorporating recovery.

  What risks or challenges might health care manager encounter

HLTH330- How will accomplishing these objectives support your success in management? What risks or challenges might a health care manager encounter if he or she has not mastered these objectives? Explain.

  The success criteria of assignment

What did you understand as the success criteria of the assignment? Reflect on whether or not you met the assignment success criteria.

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