What price should pete ask

Assignment Help Finance Basics
Reference no: EM132403350

Pete's Real Estate is currently valued at $65,000. Pete feels the value of his business will increase at a rate of 10% per year, compounded semiannually for the next 5 years.

At a local fundraiser, a competitor offered Pete $70,000 for the business. If he sells, Pete plans to invest the money at 6% compounded quarterly. What price should Pete ask?

Reference no: EM132403350

Questions Cloud

What is the saving in brokerage commission : What is the saving in brokerage commission due to block versus non-block trades?
What is the monthly mortgage payments : What is the monthly mortgage payments in the first month and the fourth month of the loan?
What would pcn stock value be if the dividend : a. What would PCN's Stock value be if the dividend was expected to grow at a constant: -5 percent?
Calculate the cash throw-off for investment : An office building which generates $260,000 in Net Operating Income is advertised for sale at a price of $3,250,000.
What price should pete ask : If he sells, Pete plans to invest the money at 6% compounded quarterly. What price should Pete ask?
What is the maximum price he should be willing to pay : Mr. Wilson wants to buy the annuity offered by Fair Insurance. What is the maximum price he should be willing to pay for the annuity?
What is the expected rate of return on the stock : If the stock currently sells for $26.00 per share, what is the expected rate of return on the stock?
Will us interest rates increase or decrease : As the portfolio manager, what advice would you provide to your financial planning clients? Should they maintain their current positions
What is the range of possible intrinsic values for geico : Based on Value Line's forecasted information, what is the range of possible intrinsic values for GEICO?

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the optimal capital budget

Its target capital structure consists of 35 percent debt and 65 percent common equity. If Tri-Q's marginal tax rate is 40 percent, what is the optimal capital budget?

  Business professionals and entrepreneurs

Many people seem to have the sense that ethics are spiraling downward in business, yet most business professionals and entrepreneurs.

  Identify and explain four forms of netting

Identify and explain the primary methods of managing credit risk for derivatives dealers? Identify and explain four forms of netting?

  How much money did eugene have for retirement

Eugene began to save for his retirement at age 32, and for 12 years he put $ 200 per month into an ordinary annuity at an annual interest rate of 7% compounded.

  What is the effective cost of a six-month discount loan

What is the effective cost of a six-month discount loan with a stated rate of 8%? a) 7.86% b) 8.33% c) 8.51% d) 9.23%

  Journalise the above-mentioned transactions

Journalise the above-mentioned transactions, draw up individual ledger account and close off the ledger accounts. Narratives are not required.

  Discuss the two facts of globalisation

Discuss the two facts of Globalisation, and how this has changed the relationship between business and society in the last few decades

  What is the expected capital gains yield

The next dividend payment by Mosby, Inc., will be $2.90 per share. The dividends are anticipated to maintain a 7.75 percent growth rate, forever. Assume the stock currently sells for $49.40 per share.

  What return will stock z produce in the lukewarm state

What return will stock Z produce in the Lukewarm state of the world?

  What is a trade secret

What is a trade secret? Provide an example of a trade secret. How might the trade secret you identified help a firm establish a competitive advantage.

  What are bonds and how are they traded

Personal Finance: What are bonds? What are their features and how are they traded? What are stocks?

  Computation of number of stocks and stock price

Computation of number of stocks and stock price and Assume there is no capital gains tax

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