Question
1- Assume that 5 years from now, you are expected to receive 3450$. If the annual market discount rate is 7%, what is the worth
1- Assume that 5 years from now, you are expected to receive 3450$. If the annual market discount rate is 7%, what is the worth of this investment?
2- Suppose that you have 2500$ to invest into your deposit account for 10 years. The bank offers 8.5% interest per year and it can be received as simple or compounding interest. Based on this, what is the difference between the interest payments on this investment?
3- Assume that XYZ corporation decided to distribute 800$ of it's total 1400$ profit to the shareholders. If the total equity of this firm is 22,000$, what is the sustainable growth rate?
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