What is the irr for this investment

Assignment Help Business Economics
Reference no: EM131809081

One share of Festival Cruise Line stock initially sells for $25. Each year, the company pays dividends of $.75. After holding the stock for 3 years, the investor sells it for $30. What is the IRR for this investment?

Reference no: EM131809081

Questions Cloud

Determine the number of miles driven per year : For a vehicle that you or a friend owns, determine the number of miles driven per year. Find three alternative sets of 4 tires that differ in their tread warran
Review problem related to the scope triangle : Suppose the scope triangle were modified as follows: Resource Availability occupies the center, and the three sides are Scope, Cost, and Schedule.
Comparison of diesel versus gasoline engines : Harbor Delivery Service Annual comparison of diesel versus gasoline engines.
What is the firm expected stock price in five years : If MCA's dividends are expected to grow at a constant rate in the future, what is the firm's expected stock price in five years
What is the irr for this investment : Each year, the company pays dividends of $.75. After holding the stock for 3 years, the investor sells it for $30. What is the IRR for this investment?
What is the purpose of a bank reconciliation : What is the purpose of a bank reconciliation? What are the reasons for differences between the cash reported in the accounting records and the cash balance.
Determining the irr : Assume that the lot will not be reassessed for the next 4 years (property taxes remain constant) and that the value increases by 20% before it is sold
Prepare the journal entries necessary at december : Ignore income tax effect, prepare the journal entries necessary at December 31, 2010 to record the above correction. The books of 2010 are still open
How the erosion of individual rights have impacted business : Discuss John Locke's influence on the Founders of the United States. Specifically, draw parallels between Locke and the Founding Documents.

Reviews

Write a Review

Business Economics Questions & Answers

  Assume that an economy producing two products

Assume that an economy producing two products, skateboards also in-line skates, is initially in equilibrium also that skateboards also in-line skates are substitutes.

  Pros and the cons of using robots

i) A thorough discussion on both the pros and the cons of using robots. ii) The discussion must be address ethical issues that may arise from the action of the company

  Labor turnover during periods of economic expansion

Labor turnover during periods of economic expansion is largely the result of:

  Effects in terms of the income effect-substitution effect

After Iraq invaded Kuwait, gasoline prices rose dramatically – up 50 percent. There were many effects of the increased price of gasoline. Explain the following effects in terms of the income effect, substitution effect, or both effects:

  The production function

The production function. Y=K^5 (AN)^.5 , where both the population and the pool of labor are growing by rate n=.07, the capital stock is depreciating at a rate of d= .03, and A is normalized to 1. What are the capitals and labor's shares of income? W..

  Representation of export tax on natural resource flows

Provide a fully labeled graphical representation of an export tax on natural resource flows from a small country. How much is supplied in total? How much is supplied to the local market and how much to the international market before and after the ta..

  What happens to the equilibrium quantity

Consider the market for natural gas. Suppose that a new drilling technique is invented that allows for the economical extraction of resources that were currently uneconomical to extract. What happens to the equilibrium price? What happens to the equi..

  Technology transfer in the solow model

Technology transfer in the Solow model: One explanation for China’s rapid economic growth during the past several decades is its expansion of policies that encourage “technology transfer.” Draw a graph showing what happens to output in China over tim..

  What is the stock selling for

Fincorp will pay a year-end dividend of $2.40 per share, which is expected to grow at a rate of 4% for the indefinite future. The discount rate is 12%.

  What is the value of marginal revenue of the unit produced

A monopolist face a market demand curve given by QD = 22 - p. What is the value of the marginal revenue of the 4th unit produced?

  Calculate total expected utility from each restaurant option

Patricia is researching venues for a restaurant business. She is evaluating three major attributes that she considers important in her choice: taste, location, and price. The value she places on each attribute, however, differs according to what type..

  Most firms in the industry in long-run equilibrium

There are 300 purely competitive farms in the local dairy market. Of the 300 dairy farms, 298 have a cost structure that generates profits of $42 for every $600 invested. a.What is the percentage rate of return for these 298 dairies? (percent) B. Wil..

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