What is opportunity worth today

Assignment Help Finance Basics
Reference no: EM132097888

Using the constant growth perpetuity formula, assume that you will receive $48,000 at the end of the first year this cash flow will grow 4.7% annually forever after that. With a cost of money of 9.5 percent, what is this opportunity worth today?

Reference no: EM132097888

Questions Cloud

Describe the target market for desert surf : Describe the target market for Desert Surf.
Increase and decrease in profits amount : Why even though interest rates increase and decrease by same percentage it will still result in the increase and decrease in profits amount to be difference?
Could some tell me which time value of money : Could some tell me which Time Value of Money (TVM) inputs are used to calculate the yield on a bond? This would be greatly appreciated.
Accumulate the money necessary for retirement : How much do you need to set aside at the end of each year to accumulate the money necessary for your retirement? (Assume year-end cash flows.)
What is opportunity worth today : Using the constant growth perpetuity, assume that you will receive $48,000 at the end of the first year this cash flow will grow 4.7% annually forever a
What is the current dividend per share : If it's the company's policy to always maintain a constant growth rate in its dividends, what is the current dividend per share?
Current price of the bond : Suppose a German company issues a bond with a par value of €1,000, 23 years to maturity, and a coupon rate of 5.8 percent paid annually.
How the sensors communicate with the app and the hardware : In this project work, it is expected to show the things that is expected to be energy efficient in the smart home, the name and Type of sensors used
What is financial statement analysis : What is financial statement analysis and what are its objectives? Explain why the identified information is relevant to the stakeholder

Reviews

Write a Review

Finance Basics Questions & Answers

  What are the six stages of the capital budgeting process

What is the link between a firm's business strategy and its capital budgeting process?

  How a minor change in demand at the retail level

Discuss how a minor change in demand at the retail level can significantly impact supply chain variation at distributors, manufacturers, and suppliers.

  The first bank of the ozarks generates 00155 dollars of

the first bank of the ozarks generates 0.0155 dollars of net income per dollar of assets and it has a profit margin of

  How can tax-exempt bonds offer lower-cost mortgage money

Explain the two basic kinds of mortgage pools used to back securities and the two different methods used to generate the securities.

  Calculate the rate nu-mode should expect to pay

Inflation is expected to be 4% over the next 12 months. Economists believe the pure the pure interest rate is currently about 3 1/2%.

  Find what is the sustainable growth rate

What is its sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

  Company within the european union or outside

If you were the head of a firm based in the United States, please answer the following questions, providing the rationale behind your answers:

  Allocation of interest expense

Critically discuss how and why interest expense is allocated between measurement periods.

  Firm operating in global economy

Define as many new risks that a firm operating in the global economy is faced with in comparision to firms operating entirely in one country.

  Default risk premium on the corporate bonds

If the liquidity premium is 1.35%, what is the default risk premium on the corporate bonds? Round your answer to two decimal places.

  What is the actual return for the three months

If you purchase a three month $10,000 T-Bill for $9,800, what is the actual return for the three months. Can you please help me by showing me the calculations?

  Determine the autonomy-beneficial conflicts between the

cathy smith an eighty-eight-year-old woman was admitted to the emergency room from the nursing facility with acute

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