User Account

All Pages

You are serving a jury a plaintiff is suing the city for

Assignment Help Finance Basics
Reference no: EM13478386

You are serving a jury. A plaintiff is suing the city for injuries sustained after a freak street sweeper accident. In the trial doctors testify that it will be five years before the plaintiff is able to return to work. The jury has already decided in favor for the plaintiff. You are the foreperson of the jury and propose that the jury give the plaintiff an award to cover the following:

(a) The present value of two years back pay. The plaintiff annual salary for the past two years would have been 47,000 and 50,000 respectively.

(b) The present value of five years'future salary. You assume the salary would be 54,000 per year.

(c) $150,000 for pain and suffering

(d) $20,000 for court costs. Assume that the salary payments are equal amounts paid at the end of each month.

(E) If the interest rate you choose is a 9 percent EAR, what is the size of the settlement?

(F) If you were the plaintiff, would you like to see a higher or lower interest rate?

Reference no: EM13478386

Questions Cloud

What would be the maximum amount of checkable deposits : the simplex financial system is characterized by a required reserves ratio of 11 percent initial excess reserves are 1
Judy johnson is choosing between investing in two treasury : judy johnson is choosing between investing in two treasury securities that mature in five years and have par values of
Think about the meetings you have either attended or : situationthink about the meetings you have either attended or facilitated. have they been effective? have they been
You can add dividend yield to expected growth rate to get : you buy a share of the ludwig corporation stock for 21.40. you expect it to pay dividends of 1.07 1.1449 and 1.2250 in
You are serving a jury a plaintiff is suing the city for : you are serving a jury. a plaintiff is suing the city for injuries sustained after a freak street sweeper accident. in
The dividend is expected to grow at constant rate of 7 : thomas brothers is expected to pay a 0.50 per share dividend at the end of the year i.e. d1 0.50. the dividend is
Assume that kish inc hired you as a consultant to help : assume that kish inc. hired you as a consultant to help estimate its cost of common equity. you have obtained the
Imediately after she bought bonds interest rates fell to : a bond trader purchased each of the following bonds at a yield to maturity of 8 percent. immediately after she
A very small countrys gross domestic product is 12 million : a very small countrys gross domestic product is 12 million. a. if government expenditures amount to 7.5 million and

Reviews

Write a Review

Finance Basics Questions & Answers

  Which plan will produce the higher value

Compute P0 (price of the stock today) under Plan A. Note D1 will be equal to D0 X (1+g), or $2.00 (1.06). Ke will be equal to 10 percent and g will be equal to 6 percent.

  What is the present value of this perpetuity

Suppose that you have a growing perpetuity that starts next year with a $166.91 payment, grows at 7.6% and has a discount rate of 14.3%. What is the present value of this perpetuity?

  Systemic and unsystemic events

Classify the following events as mostly systematic or mostly unsystematic and tell us why. Is the distinction clear in each case?

  Compute earnings per share of common stock

Abc Corporation's price earnings ratio is 8 and the market price of a share of common stock is $32. The corporation has 3,000 shares of preferred stock outstanding with each share receiving a dividend of $3 each share.

  Foreign currency exchange rate determination

One British pound can buy 1.62 U.S. dollars today in foreign exchange market and currency forecasters predict that U.S. dollar will depreciate by 12 percent against the pound over next 30 days.

  Computing expected growth rate

IBM just paid a $2 dividend. The required rate of return for IBM stock is 22 percent. If a value of a share of IBM is expected to be $82.1516 at the end of year 2, Calculate IBM's expected growth rate?

  What is primrose cash conversion cycle

If Primrose could lower its inventories and receivables by 9% each andincrease its payables by 9%, all without affecting sales or cost of goods sold, what would be the new CCC? Round your answer to two decimal places.

  Determine the before-tax benefit or loss of accepting

Determine the before-tax benefit or loss of accepting the quantity discount. (Assume the carrying cost remains at $0.40 per box whether or not the discount is taken.)

  Computation of present value of the annuity

Computation of present value of the annuity and if you have to wait 2 years instead of 1 year for the first payment

  The most reasonable estimation of insurance need?

Which of these four methods would result in the most reasonable estimation of insurance need?

  What is the projects discounted payback period

A project has an initial cost of $51,725, expected net cash inflows of $13,000 per year for 8 years, and a cost of capital of 13%. What is the project's payback period? Round your answer to two decimal places.

  What is the expected dollar dividend over next three years

How does the expected total return compare with the required rate or return on the stock? Does thsi makes sense? Explain your answer?

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