What is the value today of receiving

Assignment Help Accounting Basics
Reference no: EM133111884

Question - Assume the real rate of interest is 4.00% and the inflation rate is 2.00%. What is the value today of receiving 11,002.00 in 7.00 years?

Reference no: EM133111884

Questions Cloud

Significance of indifference point : Compute the EPS-EBIT indifference point when tax rate is 50%. Write a detailed note on the significance of indifference point.
What rate must Bank B pay for Derek : Derek can deposit $267.00 per month for the next 10 years into an account at Bank A. What rate must Bank B pay for Derek
Role of management accounting in business : Examine the key problems with traditional management accounting techniques when applied in a modern business environment
What is wal gain-loss on the futures contract : Wal is a sheep farmer from out west. When he shears his flock in 3 months' time he will have approximately 9,000 kilograms of wool. The current price of the SFE
What is the value today of receiving : Assume the real rate of interest is 4.00% and the inflation rate is 2.00%. What is the value today of receiving 11,002.00 in 7.00 years
Discuss how the stock for your company is trending : Discuss how the stock for your company is trending. Explain why the stock is in either an uptrend or downtrend.
How does the fisher effect affect the bond valuation : How does the Fisher Effect affect the bond valuation, stock valuation, and capital budgeting?
Compute the intrinsic value of lee corp : ABC Corp., which is a small cap company with a stock beta of 1.2, is expected to experience a transitory turnaround period during which its dividends are expect
Which company would value higher and why : Ten Dollar Corporation has expected earnings of $10.00 a share for three years only. Which company would value higher and why

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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