What is the length of the annuity time period

Assignment Help Financial Management

Reference no: EM131064592

You are considering an annuity which costs $75600 today. The annuity pays $6900 a year. The rate of return is 6 percent. What is the length of the annuity time period? please provide numbers to enter into calculator.

Reference no: EM131064592

Questions Cloud

The underwriters spread and administrative costs : The Elkmont Corporation needs to raise $51.3 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed funds. What are the required proceeds from the sale necessary f..

Using a fama-french three-factor model : Fama-French Three-Factor Model An analyst has modeled the stock of a company using a Fama-French three-factor model. The risk-free rate is 3%, the market return is 10%, the return on the SMB portfolio (rSMB) is 2.6%, and the return on the HML portfol..

General cash offering to raise the needed funds : The Dunning Co. needs to raise $66.9 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed funds. What are the required proceeds from the sale necessary for the c..

Calculate yield to maturity-realized compound yield of bond : Consider an 7.5% coupon bond selling for $966.10 with 3 years until maturity making annual coupon payments. The interest rates in the next 3 years will be, with certainty, r1 = 7%, r2 = 8%, and r3 = 10%. Calculate the yield to maturity and realized c..

What is the length of the annuity time period : You are considering an annuity which costs $75600 today. The annuity pays $6900 a year. The rate of return is 6 percent. What is the length of the annuity time period? please provide numbers to enter into calculator.

What will your homemade dividend be in two years : You own 2,200 shares of stock in Avondale Corporation. You will receive a $1.60 per share dividend in one year. In two years, Avondale will pay a liquidating dividend of $60 per share. The required return on Avondale stock is 20 percent. Suppose you ..

How does that bear on the issue of market efficiency : In the middle and late 1990s, the performance of the pros was especially poor---on the order of 90 percent of all equity mutual funds under performed a passively managed index fund. How does that bear on the issue of market efficiency?

What is the effective annual rate : Big Dom’s Pawn Shop charges an interest rate of 26.5 percent per month on loans to its customers. Like all lenders, Big Dom must report an APR to consumers. What rate should the shop report? What is the effective annual rate?

Nonconstant growth valuation-stock current price : A company currently pays a dividend of $2.75 per share (D0 = $2.75). It is estimated that the company's dividend will grow at a rate of 17% per year for the next 2 years, and then at a constant rate of 6% thereafter. What is your estimate of the stoc..

User Account

All Pages