PV of a perpetuity of $200 i/rate is 5% ii/ rate is 10% (first payment is...

PV of a perpetuity of $200 i/rate is 5% ii/ rate is 10% (first payment is in one year)
1. 200/.05= 4000
2. 200/.10=2000
PV of a perpetuity of $200 i/rate is 5% ii/ rate is 10% (first payment is now)
PV of a growing (g=2%) perpetuity of $200 i/rate is 5% ii/ rate is 10% (first payment is in one year)
PV of a growing (g=2%) perpetuity of $200 i/rate is 5% ii/ rate is 10% (first payment is now)
PV of a 20-year annuity of $200 i/rate is 5% ii/ rate is 10% (first payment is in one year)
FV of a 20-year annuity of $200 i/rate is 5% ii/ rate is 10% (first payment is in one year)
PV of a 20-year annuity of $200 i/rate is 5% ii/ rate is 10% (first payment is now)
IRR of an investment if you make 5 times your initial investment in 6 years (no intermediary Cash Flows)
IRR of an investment if you make 4 times your initial investment in 3 years (no intermediary CF)
IRR of an investment if you make 2.5 times your initial investment in 4 years (no intermediary CF)
IRR of an investment if you make 0.5 time your initial investment in 2 years (no intermediary CF)
IRR of an investment if you make 4 times your initial investment in 2.5 years (no intermediary CF)
IRR of an investment if you make 1 time your initial investment in 3 years (no intermediary CF)
An EBIT grows from $130.5 M to $404.5 M in 5 years i/ what is its overall growth over the period? ii/ what is its CAGR (i.e. its Compound Annual Growth Rate, also called annualized growth rate)?
An EBIT declines from $130.5 M to $44.5 M in 5 years i/ what is its overall decline over the period? ii/ what is its CAGR?

Solutions

Expert Solution

jeff jeffy answered 4 weeks ago

Next > < Previous

Related Solutions

What is the difference between the payment (PMT) and present value (PV) in a perpetuity? What...

What is the difference between the payment (PMT) and present value (PV) in a perpetuity? What are the proper definitions of each? For example, this problem that I'm solving now: "What should you be willing to pay in order to receive $5,000 every six months forever, if you require 8% per year on the investment"? Using the formula: Perpetuity Present Value = Payment/ Interest Rate I initially started solving for Payment (PMT) (because it directly asks you to), but my...

Mike buys a perpetuity-immediate with varying annual payments. During the first 5 years, the payment is constant and equal to 10.

Mike buys a perpetuity-immediate with varying annual payments. During the first 5 years, the payment is constant and equal to 10. Beginning in year 6, the payments start to increase. For year 6 and all future years, the payment in that year is K% larger than the payment in the year immediately preceding that year, where K < 9.2. At an annual effective interest rate of 9.2%, the perpetuity has a present value of 167.50. Calculate K

1. What is the PV of a perpetuity of $100 at an interest rate of 6%?...

1. What is the PV of a perpetuity of $100 at an interest rate of 6%? 2. What is the PV of a perpetuity of $100 growing at a rate of 2% per year and earning an interest rate of 6%? 3. What is the present value of $100 invested at the beginning of each year at 5% for 6 years?

Explain why the equation for PV of a perpetuity is so simple as = C/Rate, if...

Explain why the equation for PV of a perpetuity is so simple as = C/Rate, if is a constant stream of CF that lasts forever?

What is the present value of a perpetuity of annual paymentswhere the first payment is...

What is the present value of a perpetuity of annual payments where the first payment is in one year and each payment is $4599.99?

At an annual interest rate of i, i ≥ 0, the present value of a perpetuity...

At an annual interest rate of i, i ≥ 0, the present value of a perpetuity paying 10 at the end of each three-year period, with the first payment at the end of year 3, is 34.21. At the same annual effective rate of i, the present value of a perpetuity paying 1 at the end of each four-month period, with the first payment at the end of four months, is X. Calculate X.

Compute the present value of a perpetuity that grows at the rate of 10% for the...

Compute the present value of a perpetuity that grows at the rate of 10% for the first 10 years and at the rate of 15% from year 11 onwards. The first payment for this perpetuity to be received in one year from now is $1,000 and the required rate of return is 20%.

A firm is expected to grow in perpetuity at a rate of 5%. If the current...

A firm is expected to grow in perpetuity at a rate of 5%. If the current year free cash flow is 15 million, the cost of equity is 16%, after-tax cost of debt is 9% and the target debt to equityratiois0.25,thenwhatisthevalueofthisfirmtodayif the tax rate is 20%?

Charlotte will receive quarterly payments from a perpetuity, beginning now. The amount of the first payment...

Charlotte will receive quarterly payments from a perpetuity, beginning now. The amount of the first payment is 100, and each subsequent payment is larger than the previous payment by an amount X. Assuming an interest of 6% convertible monthly, the present value of this perpetuity is $20,000. Find X.

A perpetuity will make annual payments with the first payment coming 12 years from now. The...

A perpetuity will make annual payments with the first payment coming 12 years from now. The first payment is for $4500, and each payment that follows is $150 dollars more than the previous one. If the effective rate of interest is 4.8%, what is the present value of the perpetuity?

Subjects