PRIN.OF CORPORATE FINANCE
13th Edition
ISBN: 9781260013900
Author: BREALEY
Publisher: RENT MCG
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Chapter 4, Problem 11PS
a)
Summary Introduction
To determine: The expected earnings of three different investors.
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Students have asked these similar questions
Interest rate (with changing years). Keiko is looking at the following investment choices and wants to know what
annual rate of return each choice produces.
a. Invest $420.00 and receive $879.72 in 9 years.
b. Invest $3,400.00 and receive $11,161.14 in 15 years.
c. Invest $32,893.92 and receive $140,000.00 in 24 years.
d. Invest $31,322.65 and receive $1,300,000.00 in 45 years.
a. What annual rate of return will Keiko earn if she invests $420.00 today and receives $879.72 in 9 years?
% (Round to two decimal places.)
An investor plan to invest in a business that will produce a continuos income stream over the next 3 years with rate of flow f(t) = 3+5 ( thounsand of dollars). If the stream earns an interest at 5% coumpound continuously< how much the investor will have by the of third year?
Interest rate (with changing years). Keiko is looking at the following investment choices and wants to know what annual rate of return each choice produces.
a. Invest
$400.00
and receive
$790.15
in
9
years.
b. Invest
$3,600.00
and receive
$11,432.56
in
16
years.
c. Invest
$30,118.98
and receive
$100,000.00
in
20
years.
d. Invest
$34,767.89
and receive
$1,100,000.00
in
35
years.
Chapter 4 Solutions
PRIN.OF CORPORATE FINANCE
Ch. 4 - Stock markets True or false? a. The bid price is...Ch. 4 - Stock quotes a. I would like to sell 1000 shares...Ch. 4 - Stock quotes Here is a small part of the order...Ch. 4 - Stock quotes Go to finance.yahoo.com and get...Ch. 4 - Valuation by comparables Look up P/E and P/B...Ch. 4 - Dividend discount model True or false? a. All...Ch. 4 - Dividend discount model Respond briefly to the...Ch. 4 - Dividend discount model Company X is expected to...Ch. 4 - Dividend discount model Company Y does not plow...Ch. 4 - Constant-growth DCF model Company Zs earnings and...
Ch. 4 - Prob. 11PSCh. 4 - Constant-growth DCF model Pharmecology just paid...Ch. 4 - Prob. 13PSCh. 4 - Cost of equity capital Under what conditions does...Ch. 4 - Cost of equity capital Each of the following...Ch. 4 - Two-stage DCF model Company Z-prime is like Z in...Ch. 4 - Two-stage DCF model Consider the following three...Ch. 4 - Two-stage DCF model Company Qs current return on...Ch. 4 - Two-stage DCF model Compost Science Inc. (CSI) is...Ch. 4 - Growth opportunities If company Z (see Problem 10)...Ch. 4 - Growth opportunities Alpha Corps earnings and...Ch. 4 - Prob. 24PSCh. 4 - Prob. 25PSCh. 4 - Prob. 26PSCh. 4 - Horizon value Suppose the horizon date is set at a...Ch. 4 - Valuing a business Permian Partners (PP) produces...Ch. 4 - Valuing a business Construct a new version of...Ch. 4 - Valuing a business Mexican Motors market cap is...Ch. 4 - Valuing a business Phoenix Corp. faltered in the...Ch. 4 - Constant-growth DCF formula The constant-growth...Ch. 4 - DCF valuation Portfolio managers are frequently...Ch. 4 - Valuing a business Construct a new version of...
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