Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i don't have much time left 21. What's the present value of $25,000 6 points received after 5 years if the appropriate interest rate is

i don't have much time left image text in transcribed
image text in transcribed
image text in transcribed
21. What's the present value of $25,000 6 points received after 5 years if the appropriate interest rate is 10%, compounded annually? * O a) $13,620 b) $19,690 c) $1,670 O d) $15,523 O e) None of the above 9. You are considering an investment in 5 points Tata's stock, which is expected to pay a dividend of $2.50 a share at the end of the year (D1 = $2.50) and has a beta of 0.9. The risk-free rate is 5.6%, and the market risk premium is 6%. Tata currently sells for $20.00 a share, and its dividend is expected to grow at some constant rate g. Assuming the market is in equilibrium, what does the market believe will be the stock price at the end of 3 years? * a) $32.32 b) $78.00 c) $27.32 d) $0 e) None of the above 16. Janice has $5,000 invested in a 5 points bank that pays 8.3% annually. How long will it take for her funds to triple? * a. 23.99 b. 25.26 c. 26.58 O d. 29.46 O e. None of the above

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Enhancing Financial Inclusion Through Islamic Finance Volume II

Authors: Abdelrahman Elzahi Saaid Ali , Khalifa Mohamed Ali , Mohamed Hassan Azrag

1st Edition

ISBN: 3030399389,3030399397

More Books

Students also viewed these Finance questions