Question
Question 14 pts MICRO-CASES-E28,791Q49 ----Mention this Code to answer this question. Requirement-A. KB owns 52% shares of a firm, which has initial endowment of $82,198.
Question 14 pts
MICRO-CASES-E28,791Q49 ----Mention this Code to answer this question.
Requirement-A.KB owns 52% shares of a firm, which has initial endowment of $82,198. The firm has identified three non-divisible feasible projects: Project-X requires $26,053 investment now to generate $32,005 next year; Project-Y requires $22,242 investment now to generate $33,776 next year; and Project-Z requires $48,423 investment now to generate $61,451 next year. The firm invests in projects reasonably to maximise wealth. Average expected rate of return from market is 17%. If KB wants to consume 49% of current dividend now, how much fund would be availableto KB in next year?
Requirement-B.KD is considering an investment in venture capital that will return nothing in the first two years, $28,791 in the third year and $8,425 a year in perpetuity starting from the fifth year. What is the present value of the investment, given an interest rate of 6.6% per annum?
Requirement-C.DB, who is 30 years old, decides to use his savings of $30,625 towards his retirement. He places the money in a bank which promises a return of 5.7% per year, compounded monthly, until his planned retirement in 22 years. How much will he have at retirement from this plan?
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