What is the present value of the benefit

Assignment Help Finance Basics
Reference no: EM132589118

Danish government has offered Zeda a concessionary loan of DKK15,000,000 at a rate of 4 percent per annum. The normal borrowing rate is 6 percent in dollars and 5.5 percent in Danish krone. The loan schedule calls for the principal to be repaid in three equal annual installments. What is the present value of the benefit of the concessionary loan? The current spot rate is DKK5.60/$1.00 and the expected inflation rate is 3% in the U.S. and 2.5% in Denmark. also how to calculate the expected spot rate?

Reference no: EM132589118

Questions Cloud

Chain-of-custody of person vote : Discuss the vulnerabilities along the chain-of-custody of person's vote, from button press, to off site data storage.
Discussed the current state of blockchain technology : Discussed the current state of blockchain technology and suggested what the technology may look like in the near future.
What is the amount of tax jacob will owe on the income : What is the amount of tax Jacob will owe on the income allocation if the income is qualified business income (QBI) and Jacob qualifies for full QBI deduction
Describe the organization development of employees : Each student will develop a PowerPoint presentation that links an organization's development of their staff to the organization's competitive advantage.
What is the present value of the benefit : Danish government has offered Zeda a concessionary loan of DKK15,000,000 at a rate of 4 percent per annum.
Describe what is found in an annual report : Describe what is found in an annual report. For example, what are the different sections that can be found in them from what you see?
What is the annual simple interest rate : The amount you repaid was $4380. What is the annual simple interest rate, rounded to two decimal places?
How explain the tax law related to the deductibility : Sam, is a small business taxpayer. He is under the impression that every dollar he spends currently related to his business will reduce his taxable income
How much do you need to pay down every 2 weeks : You would like to pay off the loan in 11 years. How much do you need to pay down every 2 weeks?

Reviews

Write a Review

Finance Basics Questions & Answers

  Draw a time line clearly indicating the situation

Assume that the expected future dividends (D) at end of periods 1,2, and 3, as well as the expected future price (P) at end of period 3 for a stock are as follo

  Failure of merger and acquisition

Describe the reasons why an M&A fails, such as technical and legal insolvency, and bankruptcy. Consider what happens to stakeholders, company image, price-per-share, market share, company assets, industry position, goodwill, and service capability...

  What is sensitivity analysis and what is its purpose

Explain how simulation works what is the value in using a simultion approach. N. What is sensitivity analysis and what is its purpose?

  How much is the yo momma total liabilities-equity

How much is the Yo Momma's Total Liabilities & Equity? Format answer with no $ symbols or commas.

  What are the pros and cons of paying out cash dividends

What if investors faced the same 15 percent tax on income and capital gains? What are the pros and cons of paying out cash dividends?

  Why do you think that financial derivatives on foreign

why do you think that financial derivatives on foreign exchange have become so popular since the fall of the bretton

  What is the firm days sales outstanding

If the firm's cash and marketable securities equal $461,018, what is the firm's days sales outstanding? (Round your answer to two decimal places.)

  Given firms plansnbsp what must the initial outlay for

a company recently borrowed 16 million from a group of banks and agreed to pay 8.4 interest before considering taxes of

  The books of record of bipin lal

The books of record of Bipin Lal for the year finished 31st March, 2011, were shut with a distinction in the trial equalization conveyed forward

  Excessive optimism or overconfidence

Excessive optimism or overconfidence is one of the most commonly observed characteristics in human beings.

  Calculate the payment for a loan based on constant payments

A few years back, Dave and Jana bought a new home. They borrowed $230,415 at an annual fixed rate of 5.49 percent (15-year term) with monthly payments.

  What is the resilience of the bolt and of the joint members

What is the resilience of the bolt and of the joint members? What is the stiffness ratio of this assembly? What is the increase in bolt tension and the decrease in clamping force created by the external load?

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