What is the present value of annual payments of $2,000 for 12 years at 1 percent?

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A: Given: Current dividend(D0) $1.60 Required return (rs) 10% Short term growth rate (gs) 20%…

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A: When cash flows occur at different points of time, they have to be brought to the same point of time…

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A: As per the honor code of Bartleby we are supposed to give the answer of first three sub part, please…

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Q: what is the firm's net new long-term debt?

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A: " Hi, Thanks for the Question. Since, you asked multiple questions, we will answer first question…

Q: Find the BEY of a Treasury Strip that you can purchase for settlement on Oct. 24, 2019 at a quoted…

A: Here, Quoted Price is 89 Face Value is 100 Settlement Date is Oct-24,2019 Maturity Date is…

Q: Solve for the future value of $1,300 after 1 year invested at 4 percent if compounding is a) annual.…

A: Future value is the value of present investment in the future after compounding the present…

Q: We project unit sales for a new household-use laser-guided cockroach search and destroy system as…

A: NPV is a capital budgeting tool to decide on whether the capital project should be accepted by the…

Q: why can  variance/volatility of returns be a misleading measure of risk for an individual asset held…

A: The portfolio reflects a combination of assets which will provide with the benefit of elimination of…

Q: Explain the common sources of competitive advantages that are linked to corporate value.

A: Due to particular advantages or circumstances, a company and its stockholders can benefit more from…

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Q: w does stretching out AP enhance cashflow?  be specific in terms of operating cashflo

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Q: Which of the following types of investments would be most appropriate during periods of deflation?…

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Q: Explain how Tvm concepts of present and future value impact 401 planning for retirement.

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A: Present Value of Ordinary Annuity refers to the concept which gives out the discounted or today's…

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A:

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.