Question: Find the value of a perpetuity which has an initial cash flow of $ 5 1 4 . Assume a discount rate of 4 .

Find the value of a perpetuity which has an initial cash flow of $514. Assume a discount rate of 4.56%
Group of answer choices
~$23.44
~$514
~$2,343
~$11,271
~$2,880

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Problem 10-19A Using net present value and internal rate of return to evaluate investment opportunities Dwight Donovan, the president of Donovan Enterprises, is considering two investment opportunin...

Q:

practice- 1. (a) Compute the amount of money you will have in your account after 14 years by depositing an initial amount of $873 into an investment in the account with a rate of return of 7.58%....

Q:

Find the value of a perpetuity which has an initial cash flow of $ 5 4 1 . Assume a discount rate of 4 . 5 6 % Group of answer choices ~$ 1 1 , 2 7 1 ~$ 1 1 , 8 6 4 None of these answers are correct....

Q:

Practice- 1.) A)Find the value of a perpetuity which has an initial cash flow of $514. Assume a discount rate of 4.56% a.~$2,880 b.~$514 c.~$23.44 d.~$2,343 e.~$11,271 B.)Find the present value of an...

Q:

When the initial cash flow is $1000, the discount rate is 10%, and the constant growth rate of the cash flow is 2%, then the present value of the perpetuity equals to?

Q:

When the initial cash flow is $100, the discount rate is 10%, and the constant growth rate of future cash flows is 3%, the present value of the growing perpetuity equals?

Q:

4. If you deposit $2750 today at 3% AR (annual rate) compounded monthly, how much would accumulate at the end of 42 months? 5. Find the total present and future values of the following cash flow...

Q:

Find the total present and future values of the following cash flow series. Use a discount rate of r = 0.06. End of year Cash flow Present Value Future Value 1 $150 2 $175 3 $200 4 $225 5 $230...

Q:

[3 points) Find the value of C, which makes the following two cash flow series equivalent. Assume that the market interest rate is 6% per year. Note: There are multiple approaches to solving this...

Q:

You do not have to do any calculations for this question. You only need to explain, in a few sentences, what each example means; hence, your answers are strictly qualitative. However, you should be...

Q:

what is it thats missing i will resubmit later . B D E G H Enter your name in this box Tutorial 3 - Present Value of Uneven Cash Flows Find the present value of an uneven cash flow stream invested...

Q:

According to the article Seasons Cleaning, the U.S. Department of Energy reports that 25% of people with two-car garages dont have room to park any cars inside. Assuming this to be true, what is the...

Q:

On January 1, 2011, Palmer Company acquired a 90% interest in Stevens Company at a cost of $1,000,000. At the purchase date, Stevens Companys stockholders equity consisted of the following: Common...

Q:

In calculating earnings per share, net income is reduced by the amount paid out as dividends to the owners of the preferred shares.

Q:

On February 22, Stewart Corporation acquired 12,000 shares of the 400,000 outstanding shares of Edwards Co. common stock at $50 plus commission charges of $120. On June 1, a cash dividend of $1.40...

Q:

Utica Company's net accounts receivable was $250,000 at December 31, 2016, and $300,000 at December 31, 2017. Net cash sales for 2017 were $100,000. The accounts receivable turnover for 2017 was 5.0,...

Q:

The following information is from the 2017 annual report of Weber Corporation, a company that supplies manufactured parts to the household appliance industry. Average total...

Q:

Carlise Corp., which manufactures ceiling fans, currently has two product lines, the Indoor and the Outdoor. Carlise has total overhead of $139,400. Carlise has identified the following information...

Q:

On January 1, 2017, MM Co. borrows $340,000 cash from a bank and in return signs an 8% installment note for five annual payments of $85,155 each, with the first payment due one year after the note is...

Q:

------------------------------------- At the beginning of its first year of operations, Bonita Limited has 4,900, $3 preferred shares and 48,000 common shares. Using the format shown below, allocate...

Q:

5 Name at least three recruitment methods.

Q:

Choose a job of the type that you would like to apply for on completion of your studies. Gather as much material on it as possible. Review: job description; further particulars (e. g. structure,...

Q:

4 How should Bigmouth assess the extent to which a candidate fits with the company culture? Bigmouthmedia is a digital marketing company offering services such as pay per click management, display...