What is the present value of the settlement

Assignment Help Financial Accounting
Reference no: EM132968294

Problem 1: Your client was terminated today from his position as the CEO of 3G. Under the terms of his severance agreement, he will receive a severance package consisting of a payment today of $2,200,000, and then annual payments of $500,000 each for 5 years, with the first of the payments occurring precisely 4 years from today. If you use a discount rate of 3.71%, what is the present value (i.e., value as of today) of the settlement?

Reference no: EM132968294

Questions Cloud

Which method will yield the highest after tax net income : If inventory is being valued at cost, Which method will yield the highest after tax net income in a scenario where the price level is steadily declining?
How much income does david have to recognize : As an employee, David only paid $100. How much income does David have to recognize?
What is the annual percentage rate on the loan : Monroe Community Bank informs you that the monthly payment on your 12-year loan will be $1,428.19. What is the annual percentage rate (APR) on this loan?
Discuss what should be done to mitigate this threat : Identify the threat to Egon Pty Ltd and explain why it is a threat and What should be done to mitigate this threat? Discuss
What is the present value of the settlement : Your client was terminated today from his position, If you use a discount rate of 3.71%, what is the present value (i.e., value as of today) of the settlement?
What is the stock worth today for fun tennis : The returns on Fun Tennis' stock for the last 6 years, If you purchased the stock 6 years ago for $40.00, what is the stock worth today?
What is estimate of the stock price per share : If the WACC is 6%, Net Debt = $4 billion, and shares outstanding is 400 million (e.g., 0.4 billion), what is your estimate of the stock price per share?
Prepare the consolidation journal entries that large ltd : Prepare the consolidation journal entries that Large Ltd will need to pass on 30 June 2020
Why risk should be evaluated as a part of overall financial : Create a short presentation for the rest of the group that discusses why risk should be evaluated as a part of overall financial planning.

Reviews

Write a Review

Financial Accounting Questions & Answers

  What should be the issue price of bonds payable

What should be the issue price of Bonds payable under these thjre situations? also provide journal entry on the issuance of bonds under each situation.

  What is the firm average investment in receivables

The company needs $1,500,000 for a new project. If sales are all credit sales and amount to $4,000,000 per year, what is firm average investment in receivables

  What is the price of a european call option on same stock

What is the price of a European call option on the same stock that expires in six months and has a strike price of $100? The price of European put that expires

  Provide a pro-forma income statement for six years

Please provide a pro-forma income statement for six years the following: Sales = 5,750,000 with 5% annual growth. Discount rate =4%

  What the controllable variance for september is

Assuming that budgeted fixed overhead costs are equal to actual fixed costs, what the controllable variance for September 2012 is

  Identify the one true statement about the expected exposure

Identify the one true statement about the expected exposure of assets to a change in the GBP/EUR exchange rate. French importer can always successfully hedge.

  Discuss how to interpret static and flexible budget variance

Discuss how to interpret static and flexible budget variances. How is the information useful in general? What are the benefits of variance analysis? How can such analysis be detrimental rather than beneficial to the organization?

  Estimate the market value of the firm

Free cash flow ,Assume a WACC of 10% for the firm and 9% for the Cleansers division. In this question estimate the market value of the firm.

  Bill merkle and other competent executives

Merkle has had excellent growth and profits in the past decade, primarily as a result of the excellent leadership provided by Bill Merkle and other competent executives. Brewer has always enjoyed a close relationship with company and prides himself o..

  Which of the statements about research is correct

According to IFRS, which of statements about research and development costs is most correct? Research costs are capitalized and development costs are expense.

  Determine what should be the maximum number of units

Average daily consumption of materials, Determine What should be the maximum number of units in the inventory in order to avoid high storage cost?

  What is the projected amount of fixed costs

The selling price is $30 a unit, the variable cost per unit is $16, and depreciation is $16,000. What is the projected amount of fixed costs?

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