11. Calculate the present value of payments of RM15,000 per year for 4 years if the first payment starts at end of the 4th year given annual interest rate of 10 percent. 12. How much should you pay for an investment that will pay you a dividend of RM1, 750 for every quarter indefinitely if money is worth 10 percent per annum compounded quarterly for the following scenarios: i. Just after the dividend has been paid. ii. Just before the dividend is due to be paid.
11. Calculate the present value of payments of RM15,000 per year for 4 years if the first payment starts at end of the 4th year given annual interest rate of 10 percent. 12. How much should you pay for an investment that will pay you a dividend of RM1, 750 for every quarter indefinitely if money is worth 10 percent per annum compounded quarterly for the following scenarios: i. Just after the dividend has been paid. ii. Just before the dividend is due to be paid.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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11. Calculate the present value of payments of RM15,000 per year for 4 years if the first payment starts at end of the 4th year given annual interest rate of 10 percent. 12. How much should you pay for an investment that will pay you a dividend of RM1, 750 for every quarter indefinitely if money is worth 10 percent per annum compounded quarterly for the following scenarios: i. Just after the dividend has been paid. ii. Just before the dividend is due to be paid.
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