Answered: A mine will have a net annual income of…

A mine will have a net annual income of P400,000.00 annually for 15 years. Determine its value if the annual dividend rate is to be 12% payable annually and sinking fund is to accumulate 7% annually.

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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Question

A mine will have a net annual income of P400,000.00 annually for 15 years. Determine its value if the annual dividend rate is to be 12% payable annually and sinking fund is to accumulate 7% annually.

Definition Definition Dividend rate is the percentage of total net income distributed as dividend to the shareholders.

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