Reference no: EM131978860
You will receive $9,000 three years from now. The discount rate is 13 percent.
a. What is the value of your investment two years from now? Multiply $9,000 × .885 (one year’s discount rate at 13 percent). (Round your answer to 2 decimal places.)
b. What is the value of your investment one year from now? Multiply your rounded answer to part a by .885 (one year’s discount rate at 13 percent). (Round your answer to 2 decimal places.)
c. What is the value of your investment today? Multiply your rounded answer to part b by .885 (one year’s discount rate at 13 percent). (Round your answer to 2 decimal places.)
Les Moore retired as president of Goodman Snack Foods Company but is currently on a consulting contract for $47,000 per year for the next 12 years. Use Appendix B and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods.
a. If Mr. Moore’s opportunity cost (potential return) is 9 percent, what is the present value of his consulting contract? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
b. Assuming Mr. Moore will not retire for two more years and will not start to receive his 12 payments until the end of the third year, what would be the value of his deferred annuity? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
|
Describe the core business of the company
: BUACC5932 Corporate Accounting - Describe the core business of the company. Provide full details of its different activities and or business segments
|
|
Prepare the entry to record the merchandise returns
: Prepare the entry to record the merchandise returns and the year-end adjusting entry for estimated returns. Note: Record the estimated returns at net amounts.
|
|
Principle of balance sheet identity means that total assets
: The principle of balance sheet identity means that total assets are the same amount as.
|
|
What are the net cash flows of the project each year
: H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2, 670,000.
|
|
What is the value of your investment one years from now
: What is the value of your investment one year from now? Multiply your rounded answer to part a by .885.
|
|
Find the cost of common equity in given case
: Hank Corp.'s common stock currently sells for $29 per share. The most recent dividend (Do) was $2.36, and the expected growth rate in dividends per year is 7%.
|
|
Investors expectation of the price of the stock
: what must be investors’ expectation of the price of the stock at the end of the year?
|
|
Compute the ocf for the project
: If the tax rate is 40 percent, what is the OCF for this project? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567).
|
|
What is the sharpe ratio of the tanglewood fund
: What is the Sharpe ratio of the Tanglewood Fund? What is the Sharpe ratio of your new portfolio?
|