What is the value of these cash flows

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Reference no: EM132086161

Please do it in EXCEL formate with formula

1. A project will produce cash flows of $6000, $7500, $9000 and $11000 for the next four years respectively. What is the value of these cash flows today at a discount rate of 8.5 per cent?

2. What is the effective annual rate of 10.75 per cent compounded continuously.

3. The common stock of Andy's Sporting Goods sells for S45.10 a share. The company recently paid their annual dividend of S3.60 per share and expects to increase this dividend by 4 per cent annually. What is the rate of return on this stock?

4. TES, Inc. offers an 8.5 percent bond with a yield to maturity of 7.65 percent. The bond pays interest annually and matures in 22 years. What is the market price of one of these bonds if the face value is $1000?.

Note: Please do it in Excel Formulla

Reference no: EM132086161

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