What is the present value of the? liability

Assignment Help Financial Management
Reference no: EM131346986

?(Related to Checkpoint?) ? (Present value) Ronen Consulting has just realized an accounting error that has resulted in an unfunded liability of ?$370,000 due in 28 years. In other? words, they will need ?$70,000 in 28 years. Toni? Flanders, the? company's CEO, is scrambling to discount the liability to the present to assist in valuing the? firm's stock. If the appropriate discount rate is 6 ?percent, what is the present value of the? liability?

Reference no: EM131346986

Questions Cloud

Determining the value of bond issue currently under review : Your boss has indicated that he would like your help in determining the value of a bond issue currently under review. The firm has bonds outstanding that have four (04) years remaining to maturity, a coupon interest rate of 10 percent paid annually, ..
Determine nozzle efficiency and nozzles velocity coefficient : The upstream stagnation pressure and temperature are 0.150 MPa and 22.0°C.- Determine The nozzle efficiency, - The nozzle's velocity coefficient, The nozzle's discharge coefficient.
Thinks conquistador is hideous and must go immediately : Lance Murdock purchased a wooden statue of a Conquistador for $7,800 to put in his home office 8 years ago. Lance has recently? married, and his home office is being converted into a sewing room. His new? wife, who has far better taste than? Lance, t..
Calculate the exit to inlet area ratio : Calculate The exit to inlet area ratio  (Aexit/Ainlet) required.- The pressure recovery factor for the diffuser.
What is the present value of the? liability : Ronen Consulting has just realized an accounting error that has resulted in an unfunded liability of ?$370,000 due in 28 years. In other? words, they will need ?$70,000 in 28 years. Toni? Flanders, the? company's CEO, is scrambling to discount the li..
Analyze hsbc internal organizational culture factors : Analyze HSBC Internal organizational culture factors lead to the failures immoral money laundering conduct - 10 academic reference
Determine thrust produced by the nozzle in atmospheric air : A sonic converging nozzle with a negligible inlet velocity and inlet and throat areas of 2.00 in2 and 0.500 in2 , respectively,- Determine the thrust produced by the nozzle in atmospheric air.
Bank with one-year maturity and fixed interest rate : Your grandmother asks for your help in choosing a certificate of deposit? (CD) from a bank with a? one-year maturity and a fixed interest rate. The first certificate of? deposit, CD? #1, pays3.45 percent APR compounded weeklyweekly?, while the second..
Design an attitude control nozzle for a spacecraft : Design an attitude control nozzle for a spacecraft that produces 50.0 N of thrust using compressed helium gas stored at 50.0 MPa and 0.00°C.

Reviews

Write a Review

Financial Management Questions & Answers

  Bonds had a yield-to-maturity

Assume that you bought a newly-issued Zero coupon bond and a newly-issued coupon bond with a 5.5% coupon on October 10, 2010 when both bonds had a yield-to-maturity of 5.5%. The par value of each bond is $1000. What was the price of each bond when yo..

  The spot rate for the argentine peso

The spot rate for the Argentine peso is $0.3600 per peso. Over the year, inflation in Argentina is 10 percent and U.S. inflation is 4 percent. If purchasing power parity holds, at year-end the exchange rate should be approximately ______________ doll..

  True of the capital asset pricing model

Which statement is NOT true of The Capital Asset Pricing Model (CAPM):

  Which investment would generate the greater after-tax yield

If a taxpayer in the 28% tax bracket has the opportunity to invest in a taxablecorporate bond that pays 6% interest or to invest in a tax-exempt municipal bond that pays 3.5% interest (assuming that all other elements of the two bonds, e.g., risk, ar..

  Hassle-free web is bidding to provide web hosting services

Hassle-free Web is bidding to provide web hosting services for Hotel Lisbon. Hotel Lisbon pays its current provider $10,500 per year for hosting its web page, handling transactions, etc. If Hassle Free's cost of capital is 10.4%, can it bid less than..

  Support-maintain or decrease the quality of life for society

Discuss how businesses can do at least two of the following; support, maintain, or decrease the quality of life for society. Discuss how non-profit organizations can do at least two of the following; support, maintain, or decrease the quality of life..

  Describes a protective put

Which of the following describes a protective put?

  Company after considering the different lives of projects

The company is choosing between machine A and B (they are mutually exclusive and the company can only pick one). The initial cost of machine A is $400,000 and it will last for 7 years before it needs to be replaced. Which machine is a better choice f..

  What is the market value of the firms equity and debt

Equity as an Option   Sunburn Sunscreen has a zero coupon bond issue outstanding with a $20,000 face value that matures in one year. The current market value of the firm's assets is $23,200. Based on the Black–Scholes model, what is the market value ..

  Calculate bond yield to maturity if its current market price

(Yield to maturity) Citigroup has outstanding an issue of $1,000.00 face value, 8.45% coupon bonds which mature in 16 years. Calculate the bond's yield to maturity if its current market price is. 800, 1, 000, 1,150 1,300

  How much will you have to start graduate school

You are starting college this month, and your favorite aunt has agreed to give you $4,000 at the end of each of your four years and you can save $8,000 at the end of each year for the first two years after you graduate. If all of these amounts are in..

  The analyst holds portfolio with market value

Albert the Analyst holds a portfolio with a market value of $900,000 (consisting of a $100,000 investment in each of nine different common stocks). If the portfolio's beta is currently 1.30 and Albert decides to sell one of his stocks that has a beta..

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