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A tax refund expected 1 year from now has a present worth of $3000 if i = 6%. What is its present worth if i = 4%?
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- What’s the present value of a perpetuity that pays $300 per year if the appropriate interest rate is 6.5%?What is the present value of a perpetuity that pays 1,000 per year beginning 1 year from now if the appropriate interest rate is 5%?Using the following expected interest payments, cost of debt = 5%, and tax-rate = 21%, calculate the TAX SHIELD. Expected interest year 1 = 50; year 2 = 35; year 3 = 20; year 4 = 10; 5 = 0 a) 101.36 b) 46.37 c) 158.33 d) 82.85
- What is the present value of a perpetuity that pays $3,800 per year if the appropriate interest rate is 5%?the present value of perpetuity that pays 500,000 per year if the appropriate interest rate is 10% is 50,000,000 is it true or false?Using the following expected interest payments, cost of debt = 5%, and tax-rate = 21%, calculate the TAX SHIELD. %3D Expected interest year 1 = 50; year 2 35; year 3 = 20; year 4 10; 5 = 0 %3D !! %3! O 101.36 O 158.33 82.85 O 46.37
- At what rate must $700 be compounded for it to grow to $1000 in 7 years?Consider a perpetuity with a coupon of 100. Imagine that the perpetuity is purchased at time t when the market interest rate is equal to 5%. Furthermore, imagine that the coupon income is taxed at 40% and that capital gains are taxed at 20%. What is the after tax rate of return if the perpetuity is sold at time t+1 when the market interest rate continues to be equal to 5%? 0% O 2% 5% None of the above(a) Find the present and future value of an income stream of $6000 per year for a period of 10 years if the interest rate, compounded continuously, is 2%. Round your answers to two decimal places. Present value = $ Future value $ (b) How much of the future value is from the income stream? How much is from interest? Round your answers to two decimal places. The amount from the income stream is $ The amount from the interest is $
- Using the same data for 2 parts: Using the following expected interest payments, cost of debt = 5%, and tax-rate = 21% Expected interest year 1 = 50; year 2 = 35; year 3 = 20; year 4 = 10; 5 = 0 Part A) Discount the year 4 expected payment back to time 0 (today). a) 9.31 b) 10.11 c) 13.65 d) 6.50 Part B) Calculate the Tax Shield a) 101.36 b) 46.37 c) 158.33 d) 82.85What is the future value of $700 deposited for one year earning 4 percent interest rate annually?Using the principal amount of 194000. What is the simple payback period if the annual simple interest is 25000?
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