What is the annual rate of return on the investment?

Assignment Help Financial Management
Reference no: EM131953052

Investiment opportuity as folows: Year 0, unknown cash flow, Year 1 = 200 cash flos,,Year 2 = 400 cash flow, Year 3 = -100 cash flow, year 4= 500 cash flow, Year 5 = 200 cash flow

a. If other investments with comparble risk are earning 12% then how mudh shoud you be willing to pay for this investment?

If you purchase it for 800 then what is the annual rate of return on the investment?

Reference no: EM131953052

Questions Cloud

Same amount of electricity with hydrocarbons : The cost of producing electricity with windmills is far higher than the cost of producing the same amount of electricity with hydrocarbons.
Differences between the two firms waccs : What causes the differences between the two firms' WACCs?
What should the price of the security one year from now : What should the price of the security be? What should the price of the security one year from now?
What was their operating cash flow : Their interest expense was $40,000 and operating costs of $180,000. what was their Operating Cash Flow? What was their Net Cash Flow?
What is the annual rate of return on the investment? : If you purchase it for 800 then what is the annual rate of return on the investment?
What is the earnings per share or eps-figure : What is the earnings per share, or EPS, figure? What is the dividends per share figure?
What is the book value of klingon assets today : What is the book value of Klingon's assets today? What is the market value?
How much of the return came from dividend yield : What was your realized return? How much of the return came from dividend yield?
The erm framework to manage business risk : Explain how management would use the ERM framework to manage business risk.

Reviews

Write a Review

Financial Management Questions & Answers

  Special retirement accounts

He thinks that he will need $2,000,000 in special retirement accounts at age 65 to maintain his current lifestyle.

  Based on constant-growth dividend discount model

A firm pays a current dividend of $2, which is expected to grow at a rate of 8% indefinitely. If the current value of the firm’s shares is $72, what is the required return applicable to the investment based on the constant-growth dividend discount mo..

  Does a company exist just to satisfy the investors

Does a company exist just to satisfy the investors? Should any single investor be able to exert sufficient power to override a CEO?

  How much would your investments be worth today

How much would your investments be worth today? What is your average return (IRR)?

  Calculate the cost of capital for a company

You have been asked to calculate the cost of capital for a company with the following information. The company has $7,500,000 in face value bonds, trading at 96.5% of face value. The YTM on these bonds is 5.75%. Given this information, what is the es..

  Investment return-what was your percent return

Investment Return MedTech Corp stock was $51.80 per share at the end of last year. Since then, it paid a $1.30 per share dividend. The stock price is currently $63.35. If you owned 300 shares of MedTech, what was your percent return?

  Annualized interest rate applicable to the discount period

What is the annualized interest rate applicable to the discount period for the company if the discount is not taken?

  Average wage or salary for its worker

What is united airline(united continental holding)'s average wage or salary for its worker (not upper-level management)? You might have to focus on a particular job title within the company to answer this question.

  Assume these are european options and american options

Assume these are European options. Assume these are American options.

  About the market and book ratio

ABC Co. generated $15.1 billion in sales last fiscal year. At FYE, ABC’s balance sheet showed that the company has $12 billion in total assets, of which $7.3 are current assets. Its balance sheet further shows $2.5 billion in current liabilities, $3 ..

  How much will you have accumulated at the end of year

You invest $1,000 a year for ten years at 8 percent and then invest $2,000 a year for an additional ten years at 8 percent. How much will you have accumulated at the end of the 20 years?

  Cash and cash equivalents-inventory-account receivable

What is the relation of assets to: cash and cash equivalents, inventory, account receivable? What is the relation of Total Liabilities and Shareholder Equity to: long term debt, equity, retained earning?

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