What is the value of inheritance today

Assignment Help Financial Management
Reference no: EM132005823

Your great aunt left you an inheritance in the form of a trust. The trust agreement states that you are to receive $2,400 on the first day of each year, starting immediately and continuing for 20 years. What is the value of this inheritance today if the applicable discount rate is 6.75 percent? Show your calculations.

Reference no: EM132005823

Questions Cloud

The sustainable growth rate of the firm : The three components of the Dupont system of financial ratios.? The sustainable growth rate of the firm?
Makes semiannual payments : Calculate the price of a 5-year, $1,000 par value bond that makes semiannual payments,
The dividend on propulsion sciences stock : The dividend on Propulsion Sciences’ (PS) stock has grown at 10 percent per year for many years.
Present value of the stream of semiannual cash flows : Compute the market price of this bond or the present value of the stream of semiannual cash flows.
What is the value of inheritance today : What is the value of this inheritance today if the applicable discount rate is 6.75 percent?
Determining the type of share he should purchase : What should he consider before determining the type of share he should purchase?
Operates chain of weight-loss centers for carb lovers : Carbohydrates Anonymous (CA) operates a chain of weight-loss centers for carb lovers. what should the stock sell for today?
What is the turkish model and what is forward capital : What is the Turkish Model? What is a forward capital? Discuss the cases of Jerusalem and Astana in your answer.
What is the current share price : What is the current share price if the required return on this stock is 8 percent?

Reviews

Write a Review

Financial Management Questions & Answers

  What are expected terminal cash flows

What are the expected Terminal Cash Flows at the end of year 3, if we replace the old printing machine?

  Determine net effect of plan on pretax profits of bimbo

The company also estimates that an additional investment in inventory of $3 million is required because of the anticipated sales increase. Determine the net effect of this plan on the pretax profits of Bimbo.

  The project will produce same after tax cash inflows

Gold mining, inc uses the profitability index when evaluating projects. gold mining's cost of capital is 12.57 percent. what is the PI of a project if the initial costs are $1952278 and the project life is estimated as 9 years? the project will produ..

  What about apparent authority

Did Ambika have implied authority to bind Penelope here? What about apparent authority?

  Prepare the financial ratios for jc penney company

Prepare the financial ratios for J.C. Penney Company, Inc. (JCP) for the years indicated. Calculate the required financial ratios.

  What is the company receivables turnover

Aguilera Corp. has a current accounts receivable balance of $328,800. Credit sales for the year just ended were $4,192,200. What is the company's receivables turnover? What is the company's days' sales in receivables? How long did it take on average ..

  Percentage change in the value of DEF bonds

If interest rates decrease by 50 basis points, what will be the percentage change in the value of DEF bonds?

  What will be your real return

Suppose that you buy a two-year 8.1% bond at its face value. What will be your nominal return over the two years if inflation is 3.1% in the first year and 5.1% in the second? What will be your real return?

  How much interest will you pay over the life

What will be your monthly payment on a $400,000 15 and a 30 yr mortgage if the rate is 4.25% for people with good credit and 13.5% for people with bad credit 4 calculations? Also, how much interest will you pay over the life of the 4 loans you just c..

  Should the firm undertake the training program

A company is planning to invest 60,000 in a personnel training program. The 60,000 outlay will be charged off as an expense by the firm this year (year 0). Years 1-10: $10,000 per year. Years 11-20: $22,000 per year. The company has estimated its cos..

  What drawbacks do community bankers anticipate

Why do community banks not want Walmart to be in the banking business? What are the possible benefits to Walmart of such a move? What drawbacks do community bankers anticipate if Walmart is allowed to operate a full- scale bank in the United States?

  The credit spread for five year maturity

Your firm has a credit rating of A. You notice that the credit spread for five year maturity A debt is 85 basis points (0.85%). Your firm's five year debt has a coupon rate of 6%. You see that new five year treasury notes are being issued at par with..

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