User Account

All Pages

What would be your percentage return on investment

Assignment Help Finance Basics
Reference no: EM131140695

Calculating the Time Value of Money

I need the answers to these 4 questions.

1. What is the present value of:

A. $7,900 in 10 years at 11 percent?
B. $16,600 in 5 years at 9 percent?
C. $26,000 in 14 years at 6 percent?

2. What is the present value of:

A. $7,900 in 10 years at 11 percent?
B. $16,600 in 5 years at 9 percent?
C. $26,000 in 14 years at 6 percent?

3. Exodus Limousine Company has $1,000 par value bonds outstanding at 10 per- cent interest. The bonds will mature in 50 years. Compute the current price of the bonds if the percent yield to maturity is:

A. 5 percent.
B. 15 percent

4. Based on bonds paying 10 percent interest for 20 years. Assume interest rates in the market (yield to maturity) decline from 11 percent to 8 percent:

a. What is the bond price at 11 percent?
b. What is the bond price at 8 percent?
c. What would be your percentage return on investment if you bought when rates were 11 percent and sold when rates were 8 percent?

Reference no: EM131140695

Questions Cloud

Explain the finance concepts found in the given readings : Write a paper explaining the finance concepts found in the readings and how they relate to the context of the scenario.;Post your assignment as a Microsoft? Word attachment.
What inference can you draw from the numbers collected : Note that the fiscal year for the federal government is October 1 - September 31. What inference can you draw from the numbers collected?
Provide explanation as why you selecte particular investment : Select the highly marketable investment that you wish to research. Provide a brief (one paragraph) explanation as to why you selected that particular investment.
Discuss the importance of cash on hand : Discuss the importance of cash on hand and how it affects the strength of the business. Would you agree that the amount of cash on hand is a factor when comparing like businesses?
What would be your percentage return on investment : What is the bond price at 11 percent? What is the bond price at 8 percent? What would be your percentage return on investment if you bought when rates were 11 percent and sold when rates were 8 percent?
What is the required rate of return on a stock : What is the required rate of return on a stock with a $2.50 expected dividend and a $19 price with 6% growth? What is the growth rate of the stock with a $3.00 expected dividend and a $20.60 price with 15% required return?
What is tootsie rolls profit margin on net earnings : What is Tootsie Roll's profit margin on net earnings?On rent and royalty sales? On total sales? What would happen to Tootsie Roll's total gross margin if rent and royalty sales increased by 20%? Please show your work.
What was your annual rate of return on the stock : If you purchased a share of Mico.com stock on March 1, 1993 for $45 and you sold the stock at $168 on February 28, 1998, what was your annual rate of return on the stock?
Discuss types importance and usage as a risk management tool : In your paper you will need to discuss types, importance, typical users, usage as a risk management tool, pricing, effects of regulations, as well as disclosure requirements of the instrument as required by the Securities Exchange Commission.

Reviews

Write a Review

Finance Basics Questions & Answers

  Shawhan supply plans to maintain its optimal capital

1 the goal of the firm should bea. maximization of profitsb. maximization of shareholder wealthc. maximization of

  Q you would like to have 1000000 accumulated by the time

q. you would like to have 1000000 accumulated by the time you turn 65 which will be 40 years from now. how much would

  Developing a financial plan an important part

Why is developing a financial plan an important part of the entrepreneur's planning process? How are basic financial statements prepared and used in managing a small business?

  Government imposes a tariff on imported goods

If a country's government imposes a tariff on imported goods, that country's current account balance will likely and The U.S. typically has a balance-of-trade surplus in its trade with

  What is the present value of the interest tax shield

Looking over the spreadsheet, you realize that while all of the cash flow estimates are correct, your associate used the flow-to-equity valuation method and discounted the cash flows using the company’s equity cost of capital of 11%. However, the pro..

  Risk adjusted discount rate-certainty equivalent approach

What are the fundamental conceptual differences between risk adjusted discount rate and certainty equivalent approach?

  The malbim company uses a process costing system materials

complete the following exercise. provide your answers in an msword document or as an excel spreadsheet with each

  Compute the monthly rate

if the APR is 7% with semi-annual compounding, compute the monthly rate?

  Provide two 2 examples that demonstrate an increase or

nbspnbspnbsp provide two 2 examples that demonstrate an increase or change in your own theories of advanced corporate

  What is the return on the stockholders equity

If the firm has an asset turnover ratio of 4.0 times, what is the profit margin (return on sales)?

  Determine the costs of preference shares

Flotation costs are expected to be 5 per cent; these costs can be amortized for tax purpose during 8 years at a uniform rate. The corporate tax rate is 35 per cent. Determine the costs of preference shares from the perspective of the subsidiary

  Compute the weighted average cost of capital

Compute the weighted average cost of capital. (Round your intermediate and final answers to 1 decimal place. Omit the "%" sign in your response.)

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd