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Answer: $154.61 | |
Calculation and explanation: | |
Quarterly interest rate = 7.27%/4 = 1.8175% | |
Price of the security is the PV of the expected dividends of $2.81 | |
which, is paid in perpetuity. | |
Price = 2.81/1.8175% = | $ 154.61 |
[Formula finding PV of a perpetuity is used] |
Please adhere to the rounding instructions(in red) for calculations and final answer. If the answer is...
Please adhere to the rounding instructions(in red) for
calculations and final answer. If the answer is not exact, it will
be incorrect. Thanks!
Question 1 0.5 pts What is the future value in 7.8 years of $5546 invested in an account with a stated annual interest rate of 8%, compounded annually? (Round answer to 2 decimal places. Do not round intermediate calculations). Topic: Discounted Cash Flow Valuation
Please adhere to the rounding instructions(in red) for
calculations and final answer. If the answer is not exact, it will
be incorrect. Thanks!
| Question 4 0.5 pts What is the future value in 6 years of $8899 invested in an account with a stated annual interest rate of 6.3%, compounded continuously? (Round answer to 2 decimal places. Do not round intermediate calculations) Topic: Discounted Cash Flow Valuation
Please adhere to the rounding instructions(in red) for
calculations and final answer. If the answer is not exact, it will
be incorrect. Thanks!
Question 3 0.5 pts What is the future value in 5 years of $7605 invested in an account with a stated annual interest rate of 5.9%, compounded monthly? (Round answer to 2 decimal places. Do not round intermediate calculations). Topic: Discounted Cash Flow Valuation
Please adhere to the rounding instructions(in red) for
calculations and final answer. If the answer is not exact, it will
be incorrect. Thanks!
Question 2 0.5 pts What is the future value in 12 years of $604 invested in an account with a stated annual interest rate of 6.3%, compounded semi-annually? (Round answer to 2 decimal places. Do not round intermediate calculations). Topic: Discounted Cash Flow Valuation
Please adhere to the rounding instructions(in red) for
calculations and final answer. If the answer is not exact, it will
be incorrect. Thanks!
Question 8 1 pts First National Bank charges 11.20 % compounded monthly on its business loans. First Unit Bank charges 11.73%, compounded semiannually Calculate the EAR for First United Bank. (Report answer in percentage terms and round to 2 decimal places. Do not round intermediate calculations). Topic: Discounted Cash Flow Valuation ed
Please adhere to the rounding instructions(in red) for
calculations and final answer. If the answer is not exact, it will
be incorrect. Thanks!
D | Question 7 1 pts First National Bank charges 11.13 % compounded monthly on its business loans. First United Bank charges 11.53%, compounded semiannually. Calculate the EAR for First National Bank. (Report answer in percentage terms and round to 2 decimal places. Do not round intermediate calculations). Topic: Discounted Cash Flow Valuation
Please adhere to the rounding instructions(in red) for
calculations and final answer. If the answer is not exact, it will
be incorrect. Thanks!
Question 11 3 pts Your firm has been working on an advanced technology. This technology will be available in the near term. The frm anticipates the first annual cash flow from the technology to be $141504, received three years from today. Subsequent annual cash flows will grow at 2 .33% in perpetuity. What is the present value...
Please adhere to the rounding instructions(in red) for
calculations and final answer. If the answer is not exact, it will
be incorrect. Thanks!
Question 11 3 pts Your firm has been working on an advanced technology. This technology will be available in the near term. The firm anticipates the first annual cash flow from the technology to be $141504, received three years from today. Subsequent annual cash flows will grow at 2.33% in perpetuity. What is the present value of...
Please adhere to the rounding instructions(in red) for
calculations and final answer. If the answer is not exact, it will
be incorrect. Thanks!
Question 11 3 pts Your firm has been working on an advanced technology. This technology will be available in the near term. The firm anticipates the first annual cash flow from the technology to be $141504, received three years from today. Subsequent annual cash flows will grow at 2.33% in perpetuity. What is the present value of...
Please adhere to the rounding instructions(in red) for
calculations and final answer. If the answer is not exact, it will
be incorrect. Thanks!
Question 11 3 pts Your firm has been working on an advanced technology. This technology will be available in the near term. The firm anticipates the first annual cash flow from the technology to be $141504, received three years from today. Subsequent annual cash flows will grow at 2.33% in perpetuity. What is the present value of...