What is the present value of the payments you will receive

Assignment Help Accounting Basics
Reference no: EM131954329

Question: Directions: Answer the following questions on a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both.

A. You have just won the Strayer Lottery jackpot of $11,000,000. You will be paid in 26 equal annual installments beginning immediately. If you had the money now, you could invest it in an account with a quoted annual interest rate of 9% with monthly compounding of interest. What is the present value of the payments you will receive?

B. In your own words and using various bond websites, please locate one of each of the following bond ratings: AAA, BBB, CCC, and D. Please describe the differences between the bond ratings. Identify the strengths and weaknesses of each rating.

Reference no: EM131954329

Questions Cloud

Identify one stock from each of the two stock exchanges : In your own words, please identify two different stock exchanges in the United States. Describe the similarities and differences between the two stock exchanges
Create a risk-free hedge portfolio : Determine two to three (2-3) methods of using stocks and options to create a risk-free hedge portfolio. Support your answer with examples of these methods.
Create important forces that greatly influence behavior : Create important forces that greatly influence organizational behavior and important work outcomes" (Robbins & Judge, 2017, pg. 590).
Hypothesis test for two variances : Based on the data reported by a study, the authors concluded that the distribution of ferritin in older adults had a smaller variance than in young adults
What is the present value of the payments you will receive : You have just won the Strayer Lottery jackpot of $11,000,000. You will be paid in 26 equal annual installments beginning immediately.
Explain the difference in the profit realized : Explain the difference in the profit realized under the two situations (the price in each market or in the two markets combined.)
Identify and list some organizational tactics that can used : Identify and list some organizational tactics that can be used to reduce turnover in HR practices such as staffing, training and development and labor relation.
Poisson distribution at an average rate : Customers arrive at a store randomly, following a Poisson distribution at an average rate of 20 per hour. What is the probability of exactly
What the debt-to-capital ratio should be : Read chapters 15 and 16 and my slides, and look at the attached link. Then write up a report, explaining - based at the very least on the factors.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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