Entries by Hannah Wangui

lump sum

Question Josh will inherit a lump sum amount of $620,000 that is payable in 10 years. The current rate of return is 3.3%. What is the present value of the lump sum? $857,818 $85,782 $64,046 $204,600 $448,114   Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code “Newclient”

 

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Annuity

Question You have an annuity with expected $50,000 payments each year for 20 years. If the discount rate is 8%, what is the present value of this annuity? $351,677 $500,101 $1,000,000 $490,907 $367,056   Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code “Newclient”

 

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Fletcher Manufacturing

Question Fletcher Manufacturing has 8.3 million shares of common stock outstanding. The current share price is $41 and the book value per share is $7. Fletcher Manufacturing also has two bond issues outstanding. The first bond issue has a total face value of $65 million, a coupon rate of 7.5%, and sells for 99% of […]

 

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Maverick Manufacturing

Question Maverick Manufacturing has a target debt-equity ratio of 0.43. Its cost of equity is 14 %, and its cost of debt is 6 %.If the tax rate is 32 %, what is Maverick’s WACC? The answer is 11.02   Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code “Newclient”

 

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