I won't to this question answer general accounting How much should you pay for an investment that will pay you adividend of RM750 for every quarter indefinitely if money is worth 12percent per annum compounded quarterly for the following scenarios?a) Just after the dividend has been paid.b) Just before the dividend is due to be paid.

Given:Annual interest rate = 12% per annum compounded quarterlyEffective quarterly interest rate (r)…

Answered: How much should you pay for an…

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 12MC: (1) What is the value at the end of Year 3 of the following cash flow stream if the quoted interest...

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Suppose an investment will pay $21,000 in 19 years from now. If you can earn 16.35% interest compounded monthly by depositing your money in a bank, how much should you pay for the investment today?Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72.
Suppose an investment will pay $11,000 in 41 years from now. If you can earn 14.55% interest compounded monthly by depositing your money in a bank, how much should you pay for the investment today?Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72. A. $31.59 B. $31.30 C. $26.04 D. $25.74 E. $29.25
A. Assume that you have $7500 to invest. You plan to invest it for 10 years at a rate of 7% per year, compounded semiannually. What is the future value (FV) of this investment? B. Assume that you need to accumulate $25,000 by the end of 17 years. You can invest today at a rate of 12% per year, compounded quarterly. At that rate, how much must you invest today (PV) to accumu-late the $25,000? C. Assume that you have $5000 to invest today. At the end of 7 years, you need that $5000 to have grown to $10,000. If you invest at semiannual compounding, what annual rate must
Suppose an investment will pay $25,000 in 39 years from now. If you can earn 11.05% interest compounded monthly by depositing your money in a bank, how much should you pay for the investment today? Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72.
which of the following investments that pay will $5000 in 12 years have a higher price today? A. The security that earns an interest rate it 8.25% B. The security that earns an interest rate of 5.50%?
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Suppose an investment will pay $11,000 in 26 years from now. If you can earn 13.30% interest compounded monthly by depositing your money in a bank, how much should you pay for the investment today?Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72. Group of answer choices
ربو Suppose an investor will receive payments at the end of the next six years in the amounts shown in the table. 6 248 Ycar 1 5 4 2 3 Payment 465 233 632 365 334 If the interest rate is 3.5% compounded semiannually, what is the present value of the investment?. [Assume the first payment will arrive one year from now].
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2. Assume that you can invest to earn a stated annual rate of return of 12 percent, but where interest is compounded semiannually. If you make 20 consecutive semiannual deposits of $500 each, with the first deposit being made today, what will your balance be at the end of Year 20? $57,900.83 $58,988.19 O $52,821.19 O $64,131.50 O $62,527.47
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How much should you pay for an investment that will pay you a dividend of RM750 for every quarter indefinitely if money is worth 12 percent per annum compounded quarterly for the following scenarios? a) Just after the dividend has been paid. b) Just before the dividend is due to be paid.