Question
You own a store that is expected to make annual cash flows forever. The cost of capital for the store is 10.67 percent. The next
You own a store that is expected to make annual cash flows forever. The cost of capital for the store is 10.67 percent. The next annual cash flow is expected in one year from today and all subsequent cash flows are expected to grow annually by 4.82 percent. What is the value of the store if you know that the cash flow in 6 years from today is expected to be 9,100? Youssef has an investment worth 110,217 dollars. The investment will make a special payment of X to Youssef in 2 quarters in addition to making regular quarterly payments to Youssef forever. The first regular quarterly payment to Youssef is expected to be 2,990 dollars and will be made in 3 months. All subsequent regular quarterly payments are expected to increase by 0.8 percent per quarter forever. The expected return for the investment is 3.58 percent per quarter. What is X, the amount of the special payment that will be made to Youssef in 2 quarters?
White Mountain Health just bought a new hair salon for 692,812 dollars. To pay for the hair salon, the company took out a loan that requires White Mountain Health to pay the bank a special payment of 36,140 dollars in 6 months and also make regular monthly payments forever. The first regular payment is expected in 1 month and all subsequent regular payments are expected to increase by 0.52 percent per month forever. The interest rate on the loan is 1.71 percent per month. What is the payment expected to be in 1 month?
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