What is the present value of the offer if the discount rate

Assignment Help Financial Management
Reference no: EM131825286

Tom Adams has received a job offer from a large investment bank as a clerk to an associate banker. His base salary will be $46,000. He will receive his first annual salary payment one year from the day he begins to work. In addition, he will get an immediate $15,000 bonus for joining the company. His salary will grow at 2.6 percent each year. Each year he will receive a bonus equal to 10 percent of his salary. Mr. Adams is expected to work for 20 years.

What is the present value of the offer if the discount rate is 10 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Reference no: EM131825286

Questions Cloud

What is the risk-free rate if there is no arbitrage : What is the risk-free rate if there is no arbitrage? What is the payoff to the risk-free security if Cubs wins?
What is the value of the company : The company also has a perpetual bond issue outstanding with a market value of $2 million. What is the value of the company?
Value of company due to expected bankruptcy costs : Hornqvist, Inc, has debt outstanding with a face value of $6 million. What is the decrease in the value of the company due to expected bankruptcy costs?
Futures contracts may have less risk than forward contracts : Explain why futures contracts may have less “risk” than forward contracts. What features and mechanisms ensure that this is the case?
What is the present value of the offer if the discount rate : What is the present value of the offer if the discount rate is 10 percent?
Five-for-three stock split : Roll Corporation (RC) currently has 465,000 shares of stock outstanding that sell for $60 per share. RC has a five-for-three stock split?
What is the expected capital gains yield : The next dividend payment by Dizzle, Inc., will be $2.95 per share. What is the dividend yield? What is the expected capital gains yield?
Which you recognized that you entered into negotiation : Describe a situation in which you recognized that you entered into a negotiation with another person. How did this go for you?
The current market values of dietrich equity and debt : What are the current market values of Steinberg's equity and debt? What are the current market values of Dietrich's equity and debt?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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