What is the cash flow produced by the bakery

Assignment Help Finance Basics
Reference no: EM132117190

Sarah owns a bakery that is worth 117,732 dollars and is expected to make annual cash flows forever. The cost of capital for the bakery is 11.41 percent. The next annual cash flow is expected in one year from today and all subsequent cash flows are expected to grow annually by 2.46 percent. What is the cash flow produced by the bakery in 5 years from today expected to be?

Reference no: EM132117190

Questions Cloud

Calculate an exact price assuming a one percentage point : Estimate how much the price of this bond will change if rates go up one percentage point, and then calculate an exact price assuming a one percentage
Target market alternatives for the new commodore : Discussion of the target market alternatives for the new Commodore - discussion of the alternative ways of defining the sampling approach for the research
What is the net effect on the money supply : If the First Bank of Chicago decides to sell some its investments in Treasury securities to Citibank of New Jersey, what is the net effect on the money supply?
What is the depreciation expense allowed by the irs : You place a commercial building into service on May 21, 2011 costing $4,150,000. What is the depreciation expense allowed by the IRS for this building for tax.
What is the cash flow produced by the bakery : What is the cash flow produced by the bakery in 5 years from today expected to be?
Could a company debt cause them to go out of business : Is there a good rule of thumb as to what the debt to equity ratio should be? Could a company's debt cause them to go out of business?
Compare Ann rights against the salami manufacturer : BULAW5914 Assignment - Compare Ann's rights against the salami manufacturer under the tort of negligence with her rights under ss54 and 138 of the ACL
What udp or icmp messages are used and sent : How does it collect the information of every router of the path, including its IP and name and the round-trip time each hop took?
Purchasing power of your money over period : If the inflation rate is 3.3% per year, what will be the change in the purchasing power of your money over this period?

Reviews

Write a Review

Finance Basics Questions & Answers

  Case scenario of company-brain sentry

Create a device that helps coaches, athletic trainers, officials, and parents recognize when an athlete has received a blow to the head strong enough.

  You are considering implementing a lockbox system for your

you are considering implementing a lockbox system for your firm. the system is expected to reduce the average

  How much money will you need to invest

If you wanted to invest all of the money you will need for retirement right now, how much money will you need to invest?

  Goals on the financial management side

So obviously some goals of a firm would be to make profit but what are some other goals and what about goals on the financial management side?

  Forecast earnings per share for a 2 percent sales decline

If the firm has a degree of operating leverage of 3.0 and a degree of financial leverage of 5.5 (both at a sales level of $5 million), forecast earnings per share for a 2 percent sales decline.

  What are the portfolio weights

Using the result in Problem 23, show that whenever two assets have perfect negative correlation it is possible to find a portfolio with a zero standard deviation. What are the portfolio weights?

  Bonds-holding period yield

Your boss has again asked for your help. He needs to figure out the holding period yield on a candidate bond for inclusion in a pension bond portfolio and whether your company should purchase it.

  The capital asset pricing model capm uses the concept of a

the capital asset pricing model capm uses the concept of a risk free rate of return in order to calculate the cost of

  Heteroskedasticity and autocorrelation problems

We will ignore any heteroskedasticity and autocorrelation problems in the remainder of this question. However, discuss whether it is likely that these problems are present in our model.

  How can fed cause real interest rate to increase or decrease

In a column in the New York Times, Harvard economist Edward Glaeser argues: "Theory and data both predict that the 1.2 percentage point drop in real interest rates that America experienced between 1996 and 2006 should cause a [housing] price incre..

  Estimate the production in compacted cubic yards

What type of compactor would you expect to be most suitable for compacting a clean sand?

  Exchange rate uncertainty may not necessarily mean that firm

Exchange rate uncertainty may not necessarily mean that firms face exchange risk exposure. Explain why this may be the case.

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