What is the present value of growing perpetuity

Assignment Help Accounting Basics
Reference no: EM133119255

Question - What is the present value of growing perpetuity that generates a cash flow of 35 years and grow at a rate of 7% a year forever, if if discount rate is 5% a year?

Reference no: EM133119255

Questions Cloud

How much will you pay over the life of the loan : A loan is $51,232 at 3.8% interest over 4 years. How much will you pay over the life of the loan in each way using FV and PMT function
What is the maximum price : UNIK Autos is considering replacing the old assembly line with the new one at their Unik Mini Manufacturing Plant in Trois Riviere, Quebec. The old assembly lin
Research-based explaining what pay transparency : Write a research-based explaining what pay transparency is. Explain each end of the spectrum
What is the current total firm value of allied biscuit : Allied Biscuit Co. is expected to generate a free cash flow (FCF) of $15,005.00 million this year (FCF1 = $15,005.00 million), and the FCF is expected to grow a
What is the present value of growing perpetuity : What is the present value of growing perpetuity that generates a cash flow of 35 years and grow at a rate of 7% a year forever, if if discount rate is 5% a year
Compute the ebit-eps indifference point : Tiger Woods and Lumber has a capital structure of 10 million shares of common stock, $200 million of first-mortgage bonds with a coupon rate of 13%, and $40 mil
What is the two-sigma upper control limit for c-bar : Uber receives multiple complaints per day about driver behavior. Over 10 days the manager recorded the number of calls to be 7, 3, 0, 8, 9, 6, 7, 4, 9, 8. What
Is the mba a positive npv investment for you : You estimated that after the work ends, you will be able to increase your lifetime, after tax earnings by 700,000. Is the MBA a positive NPV investment for you
Calculate the roe for the firm : Calculate the ROE for the firm. (Do not round intermediate calculations and round your final answer to 2 decimal places. Omit the "%" sign in your response.)

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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