What is the present value of the offer for pamela

Assignment Help Financial Accounting
Reference no: EM132835806

Problem 1: Pamela has received a job offer from a large investment bank as an assistant to the vice president. Her base salary will be $60,000 today. Assuming for simplicity that she will receive her first annual salary payment with the appropriate increment one year from the day she begins to work. In addition, she will get an immediate $20,000 bonus for joining the company today. Her salary will grow at 3 percent each year. Each year she will receive a bonus equal to 5 percent of her salary. Pamela is expected to work for the next 40 years. What is the present value of the offer, if the discount rate is 8 percent?

a. $20,000.00
b. $61,800.00
c. $1,122,929.30
d. $1,602,929.95
e. $2,395,101.72

Reference no: EM132835806

Questions Cloud

What is the cost per equivalent unit : Firm A has spent $10,000 producing 70 complete units and another 40 which are 60% complete. What is the cost per equivalent unit
What annual rate of return did earn : Suppose that Clara sold her Ace stock for $1,820. What annual rate of return did she earn? Clara invested $2,000 in the common stock of Ace Novelties.
How changes in service delivery impact well-being of clients : Compare & Contrast social welfare services past & present. Discuss how the recent changes in service delivery may impact the well-being of clients in rural.
Why are cities important in terms of global sustainability : Why are cities important in terms of global sustainability? Give at least two specific reasons.
What is the present value of the offer for pamela : What is the present value of the offer, if the discount rate is 8 percent? Pamela has received a job offer from a large investment bank as an assistant
Create the current tax worksheet and the journal entry : The CFO of Pfizer Anti Ltd has provided you the following data: Create the Current tax worksheet and Journal entry to record current tax liability on 30 June
What is the standard direct labor cost per unit of product : What is the standard direct labor cost per unit of product Scour? Workers' benefits treated as direct labor costs 20% of wage. Number of direct workers 50
Which investment has the least amount of risk : Which investment has the least amount of risk? Standard deviation = $450, expected return = $4,500. Standard deviation = $400, expected return = $5,000
Delaying or avoiding medical care : Discuss potential problems related to delaying or avoiding medical care as well as potential solutions for improving help-seeking behavior.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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