What is the present value of this annuity

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1. You are to receive a 10 year $100,000 annuity (10 cash flows of 100,00 each) with the first cash flow occurring at the end of year 5. Given a 10% discount rate, what is the present value of this annuity?

2. Fulkerson Manufacturing wishes to maintain a sustainable growth rate of 9.75 percent a year, a debt–equity ratio of .38, and a dividend payout ratio of 33.5 percent. The ratio of total assets to sales is constant at 1.37. What profit margin must the firm achieve in order to meet its growth rate goal?

Reference no: EM131835207

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