Question
2- In one year, you will receive a payment of $2,700. Each year after, you will receive another payment. The payments will increase by 3%
2- In one year, you will receive a payment of $2,700. Each year after, you will receive another payment. The payments will increase by 3% each year. What is the present value, if the discount rate is 15%?
Round your answer to the nearest penny (two decimal points)
3- Ashanti Productions has a book value of common equity of $6,100. The present value of all of the residual income it is expected to earn in the future is $1,350. According to the residual earnings model, what is the value of Ashanti Productions? Round your answer to the nearest dollar (no decimal points)
4- You will receive a payment of $13,500 every year forever. if the discount rate is 4.5%, what is the present value?
Round your answer to the nearest dollar (zero decimal points)
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