You own a security that provides an annual dividend

Assignment Help Financial Management
Reference no: EM13877999

You own a security that provides an annual dividend of $170 forever. The security’s annual return is 7%. What is the present value of this security? Round your answer to the nearest cent

Reference no: EM13877999

Questions Cloud

Negative net income and negative operating cash flow : Examine if it is possible for a company that has negative net income and negative operating cash flow to end the year with an increase in cash and an increase in stock price. Explain your answer in as much detail as necessary.
Independent manufacturer that sells protective cases : You are the manager of an independent manufacturer that sells protective cases for the Samsung Galaxy. Samsung produces half of its phones at a plant near Hong Kong and the other half at a plant located near Shanghai.
Compute the recaptured depreciation-capital gain and loss : An asset was purchased three years ago for $100,000 and can be sold for $40,000 today. The asset has been depreciated using the MACRS 5-year recovery period and the firm pays 40% taxes on both ordinary income and capital gain. SHOWING WORK- Compute t..
Performance is measured : Performance is measured by
You own a security that provides an annual dividend : You own a security that provides an annual dividend of $170 forever. The security’s annual return is 7%. What is the present value of this security? Round your answer to the nearest cent
The use of accelerated depreciation : The use of accelerated depreciation
A high current ratio suggests that the firm : A high current ratio suggests that the firm:
What is the projects payback period : A project has an initial cost of $40,000, expected net cash inflows of $9,000 per year for 7 years, and cost of capital of 11%. What is the project's NPV? Payback: refer to the problem, what is the project's payback period?
Making plans for retirement : You and your wife are making plans for retirement. You plan on living 25 years after you retire and would like to have $75,000 annually on which to live. Your first withdrawal will be made one year after you retire and you anticipate that your retire..

Reviews

Write a Review

Financial Management Questions & Answers

  Ability to be persuasive in a workplace document

Which of the following is NOT a category of constraints on your ability to be persuasive in a workplace document?

  You are a coffee anticipating the purchase of 82000 pounds

you are a coffee anticipating the purchase of 82000 pounds of coffee in three months. you are concerned that the price

  Find the interest rates earned

Find the interest rates earned on each of the following-You borrow $650 and promise to pay back $689 at the end of 1 year. You borrow $92,000 and promise to pay back $321,858 at the end of 12 years.

  Determine the value of Aggie

The Aggie Company has EBIT of $50,000 and market value debt of $100,000 outstanding with a 9% coupon rate. The cost of equity for an all equity firm would be 14%. Aggie has a 35% corporate tax rate. Investors face a 20% tax rate on debt receipts and ..

  Basic information on the available cash flow to repay loan

You are buying a property and are considering taking out a 7% loan amortizing at a 30-year rate with monthly payments. Your first evaluation of the property indicates that it will have an NOI of $1,000,000 per year. What is the maximum conceivable am..

  Two different companies are offering punch press for sale

Two different companies are offering a punch press for sale. Company A charges $250,000 to deliver and install the device. Company A has estimated that the machine will have maintenance and operating costs of $4000 a year and will provide an annual b..

  Investments to consider each with differing risk levels

Assume your firm has multiple investments to consider each with differing risk levels. How can differing risk levels be incorporated into NPV analysis? How can they be incorporated into IRR analysis?

  Accounts receivable period is the time that elapses

The accounts receivable period is the time that elapses between the _____ and the ____.

  What is the fundamental function of the insurance company

What is the fundamental function of the insurance company--- in other words, what is it the insurance company does that makes the insurance mechanism work? A. It pools those insured’s having similar risks, and predicts the losses that those in the po..

  Purchased office supplies on account costing

On August 15th RJH Inc purchased office supplies on account costing 13,000. There were no additional purchases during August or September. Office supplies on hand August 1st were worth 2,500, on August 31st were worth 8,000 and on September 30th were..

  Interim assessment of international financial management

Assessment for the Interim Assessment of International Financial Management - the value to QN of taking out short term derivatives and a comparison between futures and a forward rate

  Cash inflows-what is the projects npv

NPV: Project K costs $70,000, its expected cash inflows are $13,000 per year for 12 years, and its WACC is 9%. What is the project's NPV?

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