What interest rate would the investment have to yield

Assignment Help Financial Management
Reference no: EM131459121

Stanley Roper has $2,300 that he is looking to invest. His brother approached him with an investment opportunity that could give Patrick $4,800 in 4 years. What interest rate would the investment have to yield in order for Stanley’s brother to deliver on his promise? (Answer needs to be stated as a decimal. For example: .1192)

Reference no: EM131459121

Questions Cloud

Describe how an arbitrage situation could be developed : A two yr. treasury bond has annual coupon pmts. Describe how an arbitrage situation could be developed.
A negotiable instrument may be payable in gold : A guarantor who signs an instrument and writes "payment guaranteed" on it is primarily liable on the instrument. A negotiable instrument may be payable in gold.
Tax benefit to the firm of using special handling procedure : How can i calculated the net pre tax benefit to the firm of using special handling procedure for 1 millon check received on monday and on friday.
What is present value of the savings : If the appropriate interest rate is 6.75 percent, what is the present value of the savings?
What interest rate would the investment have to yield : What interest rate would the investment have to yield in order for Stanley’s brother to deliver on his promise?
About the interest rate risk of lower coupon bonds : The Faulk Corp. has a 6 percent coupon bond outstanding. What does this problem tell you about the interest rate risk of lower coupon bonds?
What is the present value of this growing perpetuity : You are evaluating a growing perpetuity product from a large financial services firm. what is the present value of this growing perpetuity?
Calculate cost of common equity financing using sml formula : Paul Sharp is CFO of Fast Rocket Inc. He tries to determine cost of equity financing for company. Calculate cost of common equity financing using SML formula.
What will be the value of the investment in two years : What will be the value of the investment in two years?

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