Given an interest rate of 5.45 percent per year, what is the value at year t =
Question:
Given an interest rate of 5.45 percent per year, what is the value at year t = 7 of a perpetual stream of $2,500 payments that begin at year t = 20?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 78% (14 reviews)
Here we need to find the present value of a perpetuity at a date before the perpetuity ...View the full answer
Answered By
Asim farooq
I have done MS finance and expertise in the field of Accounting, finance, cost accounting, security analysis and portfolio management and management, MS office is at my fingertips, I want my client to take advantage of my practical knowledge. I have been mentoring my client on a freelancer website from last two years, Currently I am working in Telecom company as a financial analyst and before that working as an accountant with Pepsi for one year. I also join a nonprofit organization as a finance assistant to my job duties are making payment to client after tax calculation, I have started my professional career from teaching I was teaching to a master's level student for two years in the evening.
My Expert Service
Financial accounting, Financial management, Cost accounting, Human resource management, Business communication and report writing. Financial accounting : • Journal entries • Financial statements including balance sheet, Profit & Loss account, Cash flow statement • Adjustment entries • Ratio analysis • Accounting concepts • Single entry accounting • Double entry accounting • Bills of exchange • Bank reconciliation statements Cost accounting : • Budgeting • Job order costing • Process costing • Cost of goods sold Financial management : • Capital budgeting • Net Present Value (NPV) • Internal Rate of Return (IRR) • Payback period • Discounted cash flows • Financial analysis • Capital assets pricing model • Simple interest, Compound interest & annuities
4.40+
65+ Reviews
86+ Question Solved
Related Book For
Essentials Of Corporate Finance
ISBN: 9780073405131
6th Edition
Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan
Question Posted:
Students also viewed these Corporate Finance questions
-
Given an interest rate of 8.2 percent per year, what is the value at date t = 7 of a perpetual stream of $2,100 payments that begin at date t = 15?
-
Given an interest rate of 6.2 percent per year, what is the value at date t = 7 of a perpetual stream of $3,500 payments that begins at date t = 15?
-
Given the usual suppliers-and-parts database, what is the value of the expression S join Sp join P? What is the corresponding predicate? Warning; there is a trap here.
-
Grimm Company has 2,400,000 shares of common stock outstanding on December 31, 2014. An additional 150,000 shares of common stock were issued on July 1, 2015, and 300,000 more on October 1, 2015. On...
-
For each of the following cases, respond to the question and indicate the accounting principle or concept that applies. 1. Mike Beasley buys and sells real estate. On December 31, 2016, his inventory...
-
An investor is considering three strategies for a 1,200 investment. The probable returns are estimated as follows: Strategy 1: A certain profit of 200. Strategy 2: A profit of 12,000 with...
-
Although the attributes sampling plans introduced in this chapter are accurate portrayals of plans applied in practice, they are by necessity generic. Over the years, professional journals such as...
-
On July 1, Tin Hau Companys Work in Process Inventory account showed a beginning balance of $9,000. The Materials Inventory account showed a beginning balance of $40,000. Production activity for July...
-
WELLS MOBILE APPS AND ACCESSORIES Adjusted Trial Balance December 31, 2013 Cash Accounts receivable $ 48,064 5,178 Prepaid insurance Merchandise inventory Buildings Accumulated depreciation-Buildings...
-
George Pharmacy is a pharmaceutical salesman who has been very successful at his job in the last few years. Unfortunately, his family life has not been very happy. Three years ago, his only child,...
-
You have your choice of two investment accounts. Investment A is a 10-year annuity that features end-of-month $1,200 payments and has an interest rate of 7 percent compounded monthly. Investment B is...
-
If today is Year 0, what is the future value of the following cash flows five years from now? What is the future value 10 years from now? Assume an interest rate of 9.4 percent per year. Year Cash...
-
At a pH of 10.8, the amino acid arginine exists primarily as the following dipolar ion. Show the resonance structures for the cationic part of arginine and discuss their relative contributions to the...
-
S Based on MD5 hash function, if the input is "Under the PRISM program, which started NSA gathers Internet communications from foreign targets from nine major U.S. Internet-based communication ervice...
-
What is the output of the following code, N=7 S="Wireline Drilling Testing Artificial Lift" Do Until (N <3) S=Left(S,N) & Right (S,N) N=N-2 Loop Labell.Text=S
-
What is the output of the following code. 6 points Arr is string array of size 2X2 row and col is the index counters of Arr S="Basra is the Center of Economy" . For row = 0 To 2 For col = 0 To 2...
-
The surface area and volume of a sphere are given by following formulas, where r is the radius of the sphere and is a constant. area = 4r 4 volume ==r Write a Python program that will ask the user to...
-
For any string w, let contract(w) denote the string obtained by collapsing each maximal substring of equal symbols to one symbol. For example: contract(010101) = 010101 contract(001110) = 010...
-
The following is a story narrated to a systems analyst involved in developing an information system for selecting and ordering a book for a library. A library employed a branch librarian and five...
-
What is taxable income, and what is the formula for determining taxable income?
-
What are three work-related attitudes managers need to be conscious of?
-
Bobs Bikes Inc. (BBI) manufactures biotech sunglasses. The variable materials cost is $.74 per unit and the variable labor cost is $2.61 per unit. a. What is the variable cost per unit? b. Suppose...
-
To solve the bid price problem presented in the text, we set the project NPV equal to zero and found the required price using the definition of OCF. Thus the bid price represents a financial...
-
A proposed cost-saving device has an installed cost of $540,000. The device will be used in a five-year project, but is classified as three-year MACRS property for tax purposes. The required initial...
-
Suppose a box of mass m slides toward a spring with a speed of vi, presses 1.00 m into the spring, and then bounces away with a final speed of 15.0 m/s . Find the initial speed of the box. Take into...
-
First, take a brief look at the https://drive.google.com/file/d/1ipcMFg3KBbMnHLKi1t9yx1THFwaGJigy/view?usp=sharing (State of the Global Workplace. 2021 Report). After that, as an MBA/MSSL student,...
-
1. Write a reflection on advantages and disadvantages of a major decision you took a. A self-evaluation the advantages and disadvantages (on a scale from 1-10). b. A justification for your...
Study smarter with the SolutionInn App