What is the present value of the investment

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1. Suppose a 10 year investment generates $2000 in cash flow at the end of year one. If the cash flows grows at 4% per year and the interest rate is 9% what is the present value of the investment

2. Currently ABC stock pays no dividend and ice forecast in four years ABC will pay its first annual dividend of $1.20 difference will go at 5% per year thereafter. It's stocks with similar risk earn a return of 12% what is the current share price of ABC

3. A company is expected to have earnings per share of $5.70 this year and to pay a dividend of $3.2. The discount rate for the stock is 10.2% and the rate of return on reinvested earnings is 14.8% what is the sustainable growth rate

4. A bank pays an annual percentage rate of 6% with monthly compounding what is the effective annual rate

5. What is the price of a bond with a coupon rate of 8.5% payable annually a face value of $1000.12 years to maturity and a yield to maturity of 8%

6 An .Eight year $1000 face value bond as a coupon rate of 6% payable semi annually and sells for $950 what is its current yield

7. A one year treasury bill offers of 4.1% yield to maturity the markets consensus forecast that one year treasury bill will offer a 5.1% yield next year what is the yield on a two-year treasury bill at the expected hypothesis holds

Reference no: EM133074311

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