Questions
Find the present value of $4,543 discounted for 6 years at 13%. Assume quarterly compounding. (round...

Find the present value of $4,543 discounted for 6 years at 13%. Assume quarterly compounding. (round to the nearest whole dollar)

Consider the following cash flows and calculate the Present Value of this cash flow stream if the interest rate is 6%.  Please include two decimals in your answer and a negative if appropriate

Year 0: $-285

Year 1: $133

Year 2: $0

Year 3: $0

Year 4: $457

In: Finance

An inflation-indexed Treasury bond has a par value of $5,000 and a coupon rate of 7...

An inflation-indexed Treasury bond has a par value of $5,000 and a coupon rate of 7 percent. An investor purchases this bond and holds it for one year. During the year, the consumer price index decreases by 1.5 percent first six months of the year, and by 2.25 percent during the second six months of the year due to a deflation. What are the total interest payments the investor will receive during the year?

TYPE ANSWER AND SHOW THE WORK

In: Finance

Roberto borrows $10,000 and repays the loan with three equal annual payments. The interest rate for...

Roberto borrows $10,000 and repays the loan with three equal annual payments. The interest rate for the first year of the loan is 4% compounded annually; for the second year of the loan the interest rate is 5% compounded annually; for the third year of the loan the interest rate is 6% compounded annually.

a. Determine the size of the equal annual payments.


b. Would interchanging the interest rates for first year and third year change the answer to part a?

In: Economics

The firm is expected to distribute the following dividend over the follow years: Year 1 D1...

  1. The firm is expected to distribute the following dividend over the follow years:

Year 1 D1 = $1.5;

Year 2 D2 = $2.0;

Year 3 D3 = $2.2;

Starting from year 4, the dividend will be growing at 5% for two years, and then the growth rate will drop to 2%

  1. List the annual dividend payment for year 4-8
  2. Calculate the present value of the dividends as the price of the stock (as of today), assume the discount rate is 10%

In: Finance

You have to value a company based on its expected future cash flows. Interest rates are...

You have to value a company based on its expected future cash flows. Interest rates are currently 9%. If this company expects cash flow of $100000 next year (it is the end of year 0 or equivalently the beginning of the first year), growing at 7.8% each year until the end of the fifth year. Then, cash flow growth is expected to slow to 1.9 forever-after. What is the value of this company today, in thousands of dollars?

In: Finance

Acme Manufacturing is producing $4,000,000 worth of goods this year and expects to sell $4,100,000. The...

Acme Manufacturing is producing $4,000,000 worth of goods this year and expects to sell $4,100,000. The firm actually sells $3,900,000 worth of goods. It is also planning on purchasing $2,000,000 in new equipment during the year. At the beginning of the year, the company has $400,000 in inventory stock in its warehouse.

Find:

Planned Investment, Actual Investment, Desired end of year inventories, actual end of year inventories, unplanned inventory investment, Y, E

In: Accounting

Tails Corporation purchased and installed electronic payment equipment at its drive-in restaurants in San Marcos, TX,...

Tails Corporation purchased and installed electronic payment equipment at its drive-in restaurants in San Marcos, TX, at a cost of $51,300. The equipment has an estimated residual value of $2,700. The equipment is expected to process 275,000 payments over its three-year useful life. Per year, expected payment transactions are 66,000, year 1; 151,250, year 2; and 57,750, year 3.

Units of Production and Double Decline depreciation.

In: Accounting

I am not sure where, to begin with, this problem... "You have found the following historical...

I am not sure where, to begin with, this problem...

"You have found the following historical information for DEF Company:

                         Year1       Year 2        Year 3        Year 4

Stock Price        $46.29         $49.74          $54.55          $57.07

EPS                  $2.04 $2.9    $2.81    $3.78

Earnings are expected to grow at 8 percent for the next year. Using the company's historical average PE as a benchmark, what is the target stock price in one year?"

In: Finance

Illusions Inc. just completed its second year of operations and has a deferred tax asset of?...

Illusions Inc. just completed its second year of operations and has a deferred tax asset of? $47,500 related to a net operating loss of? $125,000 from the previous year. In the current year Illusions generates? $400,000 in revenues and incurs? $250,000 in expenses. There are no permanent or temporary? book-tax differences. Assuming the same tax rate as last? year, what amount will Illusions record for Income Tax Payable in the current? year?

In: Accounting

A borrower is offered a 30 year, fully amortizing ARM with an initial rate of 3.35%....

A borrower is offered a 30 year, fully amortizing ARM with an initial rate of 3.35%. After the first year, the interest rate will adjust each year, using 1 yr LIBOR as the index, plus a margin of 175bp. The price of the property is $8,000,000 and the loan will have an initial LTV ratio of 75% At the first reset date, 1 year LIBOR is at 3%. What is the borrower s payment during the 2nd year of the loan?

In: Finance