Calculate the Time value of money of the following cash flows: a. Napier Inc owns stock in a company that has consistently paid a growing dividend over the last five years. The first year Napier Inc owned the stock, they received £1.71 per share and in the fifth year, they received £2.89 per share. 

a. What is the growth rate of the dividends over the last five years? 

b. Colinton Corp borrows from your Financial Institution £50,000 at 10 percent annually compounded interest to be repaid in four equal annual installments. What is the actual end-of-year loan payment? 

c. A local brokerage firm is offering a zero-coupon certificate of deposit for £10,000. At maturity, three years from now, the investor will receive £14,000. What is the rate of return on this investment? 

d. Find the future value of the following cash flows at the end of year 3:+ (2 £500 received at the end of Year 1, £400 received at the end of Year 2, £300 received at the end of Year 3, assuming an opportunity cost of 10%.

e. Find the present value of the following stream of cash flows, assuming the firm's opportunity cost is 15%.

Answer rating: 100% (QA)

Answer a The growth rate of the dividends over the last five years is 571 b The actual endofyear loa... View the full answer