A company is obligated to pay its creditors $6,145 at the end of the year. If the value of the company's assets equals $5,863 at that time, what is the value of shareholders' equity?
In: Finance
Biotech company is considering buying a machine. The cashflows at the beginning of the year for each machine are shown in the following table. Assume a rate of return of 12%. Find the IRR and NPV of each machine. Which machine should Biotech buy? Do the machines have a unique IRR? Justify your answers.
|
Time |
Year 0 |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
|
Machine 1 |
-150 |
20 |
130 |
50 |
26 |
|
Machine 2 |
-90 |
-90 |
200 |
36 |
36 |
In: Finance
Given the information in the table, what is the price of the stock in YEAR 1?
|
Today’s Dividend |
$3.10 |
|
Discount Rate |
6.59% |
|
Growth rate in dividends 0 to 1 |
8.24% |
|
Growth rate in dividends 1 to 2 |
7.28% |
|
Growth rate in dividends 2 to 3 |
5.50% |
|
Growth rate in dividends 3 onward |
4.26% |
In: Finance
In: Finance
You put up $50 at the beginning of the year for an investment. The value of the investment grows 5.0%, and you earn a dividend of $4.4. What was your holding period return (HPR)?
Enter answer in percents, accurate to two decimal places.
In: Finance
Assume a farmer takes out a five year loan for $50,000. The annual interest rate is 4% and the farmer will make equal annual principal payments for years one through five. Approximately how much interest will be paid over the life of the loan? Round all numbers to the nearest whole dollar.
A. 6160
B. 56000
C. 56160
D.6000
In: Finance
At the beginning of the year, you purchased a share of stock for
$45. Over the year the dividends paid on the stock were $2.20 per
share.
a. Calculate the return if the price of the stock
at the end of the year is $40. (Negative amount should be
indicated by a minus sign. Round your answer to 2 decimal places.
(e.g., 32.16))
b. Calculate the return if the price of the stock
at the end of the year is $50. (Round your answer to 2
decimal places. (e.g., 32.16))
|
|||||||||||||
In: Finance
Given the information in the table, what is the price of the stock in YEAR 1? Today’s Dividend $3.78 Discount Rate 7.94% Growth rate in dividends 0 to 1 7.52% Growth rate in dividends 1 to 2 8.95% Growth rate in dividends 2 to 3 6.38% Growth rate in dividends 3 onward 3.08%
In: Finance
a) Please calculate the Total Factor Productivity of a country for a year with the following data on Real GDP of the country along with other required information:
Y = $ 2,000 billion
L = 40 billion hours
K = $ 10, 000 billion
α = 0.7
b) If the labour force increases by 20%, how it will affect the total factor productivity?
In: Economics
Consider a deposit of $200 made at the end of the year. There are another four annual deposits growing at a rate of 6 percent. The goal is to save $2500 at the end of 7 years. What must the interest rate be?
In: Economics