Question
1) You will receive 8 payments of $300, once every month. The first payment occurs today. The annual interest rate is 8% per year, annually
1) You will receive 8 payments of $300, once every month. The first payment occurs today. The annual interest rate is 8% per year, annually compounded. What is the effective monthly interest rate? What is the PV of the payments?
The correct answer is: 0.643%, $2346.98. Could you explain why ?
2) A financial security will pay a cash flow every year forever. The first cash flow of $3 will be paid in one year. Then the cash will grow at 5% every year. The discount rate is 10% per year, annually compounded. What is the PV of this financial security?
The correct answer is: 60 . Could you explain why ?
3) Could you provide with the solution and explain pls ?
4) Could you give the solution with explanations pls ?
How much would an investor have to sel aside today in order to have $1000 eight years from now if the current rate is 8% per year? Select one: a. $520 b. $550 c. $540 d. $530 A corporation initially has $30m of as set, financed by $15m of debt and $15m of equity. Now the company has lost $10m from business operations. Which of the following is incorrect? Select one: a. After the loss, the firm's equity value is $0m. b. After the loss, the firm's equity value is $5m c. After the loss, the firm's debt value is $15m d. After the loss, the firm's asset value is $20mStep by Step Solution
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