Reference no: EM131985239
Provide the correct formula for each question:
1. Helen will receive $45,000 per year for 6 years. If her required annual rate of return is 8.1%, what is current value of the received amount?
2. Taylor will receive $45,000 per year for 6 years. Payments will be received monthly, with the first payment being made now. If her required annual rate of return is 8.1%, what is current value of the received amount?
3. Ben wants to purchase a new condominium and borrow $210,000. He will pay that amount over 15 years at an annual 4.5% rate. What will Ben's monthly mortgage payment be?
4. Waffles inc. just sold one of its businesses. It will receive $1,300,000 annually for the next 15 years, with the first payment being received now. Its rate of return is 13%. What is the sales price of the business?
5. Cassandra has signed a 5-year purchase agreement for a new car selling for $22,000. If the annual interest rate is 3.8%, what will be the amount of the monthly payments.
Relationship between interest rate level and bond price
: What is the relationship between interest rate level and bond price? Why must this relationship be true?
|
What is present value of growth opportunities
: If the stock’s price is currently $50, what is the present value of growth opportunities (PVGO)?
|
Find the cost of capital for this project
: Find the cost of capital for this project and explain in details to Sandra, the president, how your team comes up with this cost of capital for this project?
|
What is current intrinsic value of plastic pretzels stock
: Stockholders require a return of 12.80% on this stock. What is the current intrinsic value of Plastic Pretzels stock?
|
What is the sales price of the business
: It will receive $1,300,000 annually for the next 15 years, with the first payment being received now. What is the sales price of the business?
|
Outline the specific working capital actions
: Outline the specific working capital actions that you recommend taking to mitigate the cash flow problem.
|
How much is percentage increase of your purchasing power
: During the year, consumer price index (CPI) increased 2%. How much is the percentage increase of your purchasing power?
|
How long do you have to wait to become millionaire
: If you invest all your inheritance in a tax-free bond fund earning 6.4% compounded quarterly, how long do you have to wait to become a millionaire?
|
What will be the annual rate of return on the bond
: A bond with a face value of $1,000 has 10 years until maturity, What will be the annual rate of return on the bond?
|