Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

If the 10 -year Treasury rate is at 6% and an illiquidity premium of 1% is appropriate for real estate risk, what is the present

image text in transcribed
If the 10 -year Treasury rate is at 6% and an illiquidity premium of 1% is appropriate for real estate risk, what is the present value of a technology firm that does 90% of its work for the government and has the following cash flows (assume we are at Time 0): Year 1:$75 Year 2: $68 Year 3:$71 Year 4: $80 Year 5:$89 Year 6: $100 Year 7: \$1,200 $1,125.87 $1,189,33 None of the above $1,122.01 If the 10 -year Treasury rate is at 6% and an illiquidity premium of 1% is appropriate for real estate risk, what is the present value of a technology firm that does 90% of its work for the government and has the following cash flows (assume we are at Time 0): Year 1:$75 Year 2: $68 Year 3:$71 Year 4: $80 Year 5:$89 Year 6: $100 Year 7: \$1,200 $1,125.87 $1,189,33 None of the above $1,122.01

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

Financial Reporting and Analysis Using Financial Accounting Information

Authors: Charles H. Gibson

13th edition

1285401603, 1133188796, 9781285401607, 978-1133188797

More Books

Students also viewed these Accounting questions