You are offered a security that will pay you $2,500 at the end of the year...
You are offered a security that will pay you $2,500 at the end of the year forever. If your discount rate is 8%, what is the most you are willing to pay for this security?
Homework Answers
![willing to paycash flow + rate of interest $31,250 [ 2500 896]](http://img.homeworklib.com/questions/f0adff40-b5a0-11ea-97f0-7b76048cde01.png?x-oss-process=image/resize,w_560)
Add Answer to:
You are offered a security that will pay you $2,500 at the end
of the year...
You are offered an investment that will pay $1,120 at the end of year 1, pay...
You are offered an investment that will pay $1,120 at the end of year 1, pay $1,460 at the end of year 2, and pay $1,694 at the end of year 3. If you can earn 9% on similar investments, what is the most you would pay for this investment?
5 points sa You are offered an investment that will pay 51,120 at the end of year 1. pay $1,460 at the end of year...
5 points sa You are offered an investment that will pay 51,120 at the end of year 1. pay $1,460 at the end of year 2, and pay $1994 at the end of year 3. If you can earn 9% on similar investments, what is the most you would pay for this investment?
2. What is the present value of a security that promises to pay you $1,000,000 at the end of year thirty, assuming...
2. What is the present value of a security that promises to pay you $1,000,000 at the end of year thirty, assuming the discount rate is 6 percent. (PV)
If you are willing to pay $46,850.00 today to receive $4,341.00 per year forever then your...
If you are willing to pay $46,850.00 today to receive $4,341.00 per year forever then your required rate of return must be ____%. Assume the first payment is received one year from today. If you are willing to pay $20,509.00 today to receive a perpetuity with the first payment occurring next year then the payment must be $______. Assume a 7.00% discount rate. What discount rate would make you indifferent between receiving $3,727.00 per year forever and $5,271.00 per year...
If you are willing to pay $44,793.00 today to receive $4,189.00 per year forever then your...
If you are willing to pay $44,793.00 today to receive $4,189.00 per year forever then your required rate of return must be ____%. Assume the first payment is received one year from today. If you are willing to pay $29,453.00 today to receive a perpetuity with the first payment occurring next year then the payment must be $______. Assume a 15.00% discount rate. What discount rate would make you indifferent between receiving $3,526.00 per year forever and $5,610.00 per year...
You are willing to pay $30,000 now to purchase a perpetuity that will pay you and...
You are willing to pay $30,000 now to purchase a perpetuity that will pay you and your heirs $1,200 each year, forever, starting at the end of this year. If your required rate of return does not change, how much would you be willing to pay if this were a 30-year annual payment, ordinary annuity instead of perpetuity?
6. (14 pts) You are considering an investment in a 40-year security. The security willl pay...
6. (14 pts) You are considering an investment in a 40-year security. The security willl pay $25a year at the end of cach of the rst three years The security will then pay $30 a year at the end of each of the next 20 years. The nominal interest rate is assumed to be 8 percent, and the current price (present value) of the security is $800. Given this information, what is the equal annual payment to be received from...
You are offered the right to receive $1,000 per year forever, starting in one year. If...
You are offered the right to receive $1,000 per year forever, starting in one year. If your discount rate is 5%, what is this offer worth to you? This offer is worth $(Round to the nearest dollar.)
1. You are offered an investment that will pay you $200 in one year, $400 the...
1. You are offered an investment that will pay you $200 in one year, $400 the next year, $600 the next year and $800 at the end of the next year. You can earn 10 percent on very similar investments. What is the most you should pay for this one?
Question 8 5 points Save Answ You are offered an investment that will pay $1,120 at...
Question 8 5 points Save Answ You are offered an investment that will pay $1,120 at the end of year 1, pay $1,460 at the end of year 2, and pay $1,694 at the end of year 3. If you can earn 9% on similar investments, what is the most you would pay for this investment?
5 points sa You are offered an investment that will pay 51,120 at the end of year 1. pay $1,460 at the end of year 2, and pay $1994 at the end of year 3. If you can earn 9% on similar investments, what is the most you would pay for this investment?
2. What is the present value of a security that promises to pay you $1,000,000 at the end of year thirty, assuming the discount rate is 6 percent. (PV)
6. (14 pts) You are considering an investment in a 40-year security. The security willl pay $25a year at the end of cach of the rst three years The security will then pay $30 a year at the end of each of the next 20 years. The nominal interest rate is assumed to be 8 percent, and the current price (present value) of the security is $800. Given this information, what is the equal annual payment to be received from...
You are offered the right to receive $1,000 per year forever, starting in one year. If your discount rate is 5%, what is this offer worth to you? This offer is worth $(Round to the nearest dollar.)
Question 8 5 points Save Answ You are offered an investment that will pay $1,120 at the end of year 1, pay $1,460 at the end of year 2, and pay $1,694 at the end of year 3. If you can earn 9% on similar investments, what is the most you would pay for this investment?
Most questions answered within 3 hours.
-
For the purposes of this assignment, you are to choose an
adaptive trait common to more...
asked 7 minutes ago -
Two identical flutes can play middle C (262 Hz) at 20◦C. How
many beats per second...
asked 15 minutes ago -
Potassium phosphate and calcium chloride react in a double
replacement reaction. To produce 1.0 moles of...
asked 10 minutes ago -
Sparky, Co. purchased land as a factory site for $600,000.
Sparky paid $42,000 to tear down...
asked 25 minutes ago -
A Chi-square distribution with 14 degrees of freedom is a
correct model for
Question 8 options:...
asked 54 minutes ago -
In a group of 45 mice, there are 10 that have a certain genetic
character. suppose...
asked 35 minutes ago -
Topic: Hydrogenic Atoms
The wavefunction of one of the d orbitals is proportional to sin
θ...
asked 35 minutes ago -
6. Suppose that the Bank of Canada conducts an open market
purchase of $2000 from a...
asked 50 minutes ago -
A) Suppose U=X∙Y3. Find X* and Y*.
B) Suppose U=X3∙Y. Find X* and Y*.
C) Suppose...
asked 59 minutes ago -
The only quantities of good 1 that Barbara can buy are 1 unit or
zero units....
asked 48 minutes ago -
c. Node Admittance matrix and its use in different calculations
of power transmission system. Display the...
asked 56 minutes ago -
Try to get the code down to less than 40 lines. (PYTHON)
import random
fave_number =...
asked 56 minutes ago