What is the fair value of a perpetuity that promises

Assignment Help Finance Basics
Reference no: EM132100146

Assuming a discount rate of 6% p.a., what is the fair value of a perpetuity that promises to pay $2,500 at the end of this year and for each year ever after?

Reference no: EM132100146

Questions Cloud

Client can buy the investment today : If your client can buy the investment today for $60,000 would you recommend that this is a good investment? Why or why not?
Interest on james taggart credit card : Interest on James Taggart's credit card balances is compounded daily at an effective annual rate of 14.91% (use 365 days per year). The APR on his credit card
Determine the effect of varying ax n the computed result : Determine the effect of varying Ax n the computed result for the second derivative, for the function f(x) 35 10x 4x 2 6x 3.
Irr for investing in bond : There are no other cash flows. If the bond is currently selling for $485.20, the IRR for investing in this bond is?
What is the fair value of a perpetuity that promises : Assuming a discount rate of 6% p.a., what is the fair value of a perpetuity that promises to pay $2,500 at the end of this year and for each year ever after?
Would have to be applied before x was no longer a fraction : Verify your answer to part a by writing a short Python function called strange17, taking n as its argument.
Assuming that the rate of return on investment : Which of these investments are good investments, assuming that the rate of return on investment is 13% p.a. for your client.
Write a program that enable the user to specify the location : Write a program that enables the user to specify the location and size of the circles and displays whether the two circles intersect, as shown in Figure below.
Create an unsorted array list with 100 random items : Create an unsorted array list with 100 random items in it and then perform a linear search on the array list looking for an item that is present in the list.

Reviews

Write a Review

Finance Basics Questions & Answers

  How much would a share of preferred stock cost

How much would a share of preferred stock cost today if the dividends begin exactly 5 years from now instead of next quarter? Don't forget that the PV formula.

  What will the firm investment in inventory be

Assume that Zybo, Inc. has sales of $10 million and inventory of $2 million. The corporation utilizes the percent-of-sales method of financial forecasting. If Zybo is expected to generate sales of $14 million next year, what will the firm's invest..

  What was the stock price following the split

If the firm's total market value increased by 6% as a result of increased liquidity caused by the split, what was the stock price following the split?

  What is the operating cash flow for year four

The salvage value of the fixed assets is $6,900 and the tax rate is 34 percent. What is the operating cash flow for year four?

  What is roehd - roeld

Firms HD and LD are identical except for their use of debt and the interest rates they pay--HD has more debt and thus must pay a higher interest rate. Based on the data given below, how much higher or lower will HD's ROE be versus that of LD, i.e...

  Federal income tax owed by an investor

1. What is the federal income tax owed by an investor in the 35 percent income tax bracket (15 percent tax rate on long-term capital gains and dividend income)?

  Compare and contrast three types of futures trading costs

What is the objective of an industry self-regulatory organization? Compare and contrast three types of futures trading costs ? Compare and contrast cash settlement with physical settlement ? Identify the typical characteristics of a forward market..

  Largent supplies corp has borrowed to invest in a project

largent supplies corp. has borrowed to invest in a project. the loan calls for a payment of 17384 every month for three

  What is its annual loan payment

jackson electricals has borrowed 27,850 from its bank at an annual rate of 8.5%. It plans to repay the loan in eight equal installments, beginning in a year. what is its annual loan payment?

  What financial information did you need to make the decision

How prepared were you to make the decision? What was your thought process as you were making the decision? What financial information did you need to make the decision and why?

  A treasury bond matures in 13 years has a 525 percent

a treasury bond matures in 13 years has a 5.25 percent coupon and a quoted price of 9801. find the yield to maturity?a

  What is basis in the gm stock

Realized $100,000 on the sale of company stock to an ESOP, then bought $100,000 of GM stock, and properly elected to exclude her $40,000 gain

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