What is the present value of this firm

Assignment Help Finance Basics
Reference no: EM133715911

Question: Hedge Corporation is expected to have annual free cash flow of $62,000, $65,400, and $68,900 for the next three years, respectively. After that, the free cash flow is expected to increase at a constant rate of 2 percent per year. At a discount rate of 14.5 percent, what is the present value of this firm?

Reference no: EM133715911

Questions Cloud

Emergency department denying any abdominal pain : A 56-year-old male presents to the emergency department denying any abdominal pain but reports a funny, pulsating feeling near the navel.
What is jansens savings rate : If Jansen has a disposable income of $2500, expenses of $2100, and net cash flow of $400, what is Jansen's savings rate?
What is the role of experience in social sciences research : What is the role of experience in social sciences research? Do opinions matter when considering research?
Dying prior to assisting patients and their families : To reflect on their own views and feelings about death and dying prior to assisting patients and their families.
What is the present value of this firm : the free cash flow is expected to increase at a constant rate of 2 percent per year. At a discount rate of 14.5 percent, what is the present value of this firm
Describe the elements that correlate with your portfolios : Describe the elements that correlate with your portfolio's performance. Explain how you can verify these elements.
What is the with 12 monthly payments : What is the with 12 monthly payments. The APR is 9%. What is the finance charge? finance charge?
Patient abdomen for abdominal aortic aneurysm : Identify an abnormal examination finding that should lead a nurse practitioner to further examine the patient's abdomen for an abdominal aortic aneurysm
How many payments will be received : Make fixed annual payments to you of $3493 beginning next year. If the expected rate of return is 3.0%, then how many payments will be received

Reviews

Write a Review

Finance Basics Questions & Answers

  What is mary effective annual rate

She sold all stocks today for $42.25. During that period the stock paid dividends of $2.81 per share. What is Mary's effective annual rate?

  Discuss hsbc ring-fencing strategy

Discuss HSBC ring-fencing strategy and the setting up of HSBC UK?

  Undertaking arbitrage activity

Explain how an individual would profit from financial arbitrage in this situation. Calculate the % return the individual would earn from undertaking arbitrage activity.

  What is the yield to maturity on these bonds

Radoski Corporation's bonds make an annual coupon interest payment of7.35%.The bonds have a par value of $1,000, a current price of $1,130, and mature in 12 years. What is the yield to maturity on these bonds?

  Compute the balance in margin account

Compute the balance in your margin account at the end of each of the four trading days, and compute your total profit or loss at the end of the trading period.

  You are supposed to make three payments 550 in 4 months 780

1. you borrow 5000 at a simple 15 interest rate from your friend for 18 months in order to purchase new furniture and

  Finance methods of financing international trade

Explain various trade finance methods of financing international trade.

  Commercial banks and savings institutions

Discuss the differences between commercial banks and savings institutions based on the following aspects:

  Experiences in the workplace

Compare and contrast training programs and assessment programs as they relate to your experiences in the workplace.

  How much will be in the account at the end of 30 years

If the account earns 12%, how much will be in the account at the end of 30 years?

  Calculate the present value of the running costs

Geoffrey is the owner of a small grocery store, and is considering buying a car to help him transport his wares.

  Food marketing industry related to sustainability

What are key concerns in the food marketing industry related to sustainability? Describe and provide examples from the approaches of Fairlife and McDonalds.

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