Question: Please using these formula to solved this question by hand writting. Thanks. You are considering between 2 investments: A and B. Investment A will pay

 Please using these formula to solved this question by hand writting.
Thanks. You are considering between 2 investments: A and B. Investment A
will pay you $100 per year forever with the first cash flow
Please using these formula to solved this question by hand writting. Thanks.

You are considering between 2 investments: A and B. Investment A will pay you $100 per year forever with the first cash flow occurring 11 years from today. Investment B will pay you $90 per year forever with the first cash flow also occurring 11 years from today; however, the cash flow amounts are expected to grow at 1% forever. Assume interest rates are expected to be 6.125% every year forever, What is Investment A worth today? b. What is Investment B worth today? Which investment would you choose? a. c. Formula Sheet PV- FV (1+r) r PV - PV -- reg 1 (1+r) PVC r or or Pv----6) or EAR = [1 - 478) -- EPR= [1, 478)*-- EAR - - 1 (FV - MV)] Y7M FVMV 2 D D Prs r D P- D D+P P - PVCCATS - IdT d+r 10.5") (][0-3] (FV - MV) + YTM FV + MV D P. - r-8 D Pes + D D P.- D, + P (1+r)(1+r) (1+r) P- D 3 (1+r) IdT 11+0.5 S dr PVCCATS - d+r Financial Ratios Equity Multiplier = Total Assets / Total Equity Times Interest Earned = EBIT / Interest Inventory Turnover = Cost of Goods Sold / Inventory Total Asset Turnover = Sales/Total Assets Profit margin = Net Income / Sales Market-to-Book Ratio = Market Value per Share / Book Value per Share ROE = PM X TAT X EM

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