What is the present value of all dividends? 0+ decimals Submit Part 2 If you expect to receive the $2 every quarter for exactly 2 years and nothing thereafter, what is the present value of those cash flows?
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- Consider the following cash flows: Year Cash Flow 2 $ 22,900 3 40,900 5 58,900 Assume an interest rate of 9.7 percent per year. a. If today is Year 0, what is the future value of the cash flows five years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. If today is Year 0, what is the future value of the cash flows ten years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)You put up $50 at the beginning of the year for an investment. The value of the investment grows 6% and you earn a dividend of $2.50. Your HPR is a. 8% b. 6% c. 9% d. 11% Which of the following statement about inflation is incorrect a. A positive inflation rate reduces purchase power of dollars b. Excess money supply increases inflation c. A positive inflation rate increases the real interest rate d. A positive inflation rate lows the real interest rateSuppose you are given the following cash flow stream. If the interest rate is 20 percent, what is the future value of this cash flow stream at the end of Year 3? Year CF 10 $0 1 $344 2 $314 3 $290 Enter your answer rounded off to two decimal places. Do not enter $ in the answer box.
- d. What is the rate of return on your margined position (assuming again that you invest $30,000 of your own money) if XTel is selling after one year at (i) $56; (ii) $50; (iii) $44? (Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.)The one-period rate of return on a security that was bought a year ago for $50, that paid a dividend of $2 for the year, and is now selling at $55, is __?Consider the following sequence of year-end cash flows: EOY 1 3 Cash Flow $9,000 $14,000 $19,000 $24,000 $29.000 What is the uniform annual equivalent if the interest rate is 7% per year? Click the icon to view the interest and annuity table for discrete compounding when i=7% per year. Choose the correct answer below. O A. $18,325 O B. $19,000 O C. $14,636 O D. $20,425 O E. $9,325
- If you are expecting to get OMR 66634 at the end of 3 years. Calculate its present value if the interest rate is 9% and is computed quarterly. Select one: a. 62333.02 b. 51019.88 c. 23696.30 d. 51454.83 e. All the given choices are not correct The commodities or assets that are traded in financial market are called Select one: a. Financial Service b. Financial System c. None of the options d. Financial Institution e. Financial InstrumentHow much would you be prepared to pay for a share in two years' time when it begins to pay a $0.17 dividend each year and is currently priced at $3? Assume the required rate of return is 8.5% p.a.Suppose you have $10,000 in cash to invest. You decide to sell short $5000 worth of Kinston stock and invest the proceeds from your short sale, plus your $10,000 into one-year U.S. treasury bills earning 5%. At the end of the year, you decide to liquidate your portfolio. Kinston Industries has the following realized returns: PO Div1 P1 Kinston $25.00$1.00$29.00 What is the return on your portfolio?
- 2. Answer both questions: a. You purchase 100 shares of stock for $40 a share. The stock pays a $2 per share dividend at year-end. What is the rate of return on your investment if the year-end stock prices turn out to be $38, $40, and $42? What is your real (inflation-adjusted) rate of return in each case, assuming an inflation rate of 3%? b. Consider the following information on the returns on stock and bond investment. Scenario Profitability Stocks Bonds Recession .2 -5% +14% Normal Economy .6 +15% +8% Boom .2 +25% +4% i) Calculate the expected rate of return and standard deviation in each investment. ii) Do your results support or contradict the historical record on the relationship between risk and return in the financial market in both Canada and the United States? iii) Which investment would you prefer? Explain your answer.17. Suppose we have a series of cash flows like this: x dollar at the end of 3 months, 100 dollar at the end of 6 months, x dollar at the end of 9 months, 100 dollars at the end of 1 year, and this pattern goes on forever. We know the present value of these cash flows as of today is $1,000 when discounted at 4% compounded quarterly. Find the value of x. a) $910.99 I b) $212.12 c) - $79.11 d) - $79.90 18. Suppose there is a series of cash flows: $10 at the end of year 1, $20 at the end of year 2, and nothing at the end of year 3, $10 dollars at the end of year 4, $20 at the end of year 5, and nothing at the end of year 6, and this pattern goes for a total 99 years. Assuming EAR is 10%, how much money will be there at the end of year 99. a) $1,290,528 b) $103 c) $12,527 d) None of the above May someone please kindly show the step- by-step solution by using the financial calculator or through an easy to understand method.What is the amount of the quarterly deposits, A, such that you will be able to withdraw the amounts shown in the cash flow diagram, if the interest rate is 10% compounded quarterly? Use equation of value with focal point at Pt. 8. P125,000 P75,000 No. of quarters 1 2 3 7 A deposits