Principles of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
12th Edition
ISBN: 9781259144387
Author: Richard A Brealey, Stewart C Myers, Franklin Allen
Publisher: McGraw-Hill Education
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Chapter 4, Problem 8PS
a)
Summary Introduction
To determine: The expected earnings of three different investors.
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Students have asked these similar questions
Interest rate (with changing years). Keiko is looking at the following investment choices and wants to know what
annual rate of return each choice produces.
a. Invest $420.00 and receive $879.72 in 9 years.
b. Invest $3,400.00 and receive $11,161.14 in 15 years.
c. Invest $32,893.92 and receive $140,000.00 in 24 years.
d. Invest $31,322.65 and receive $1,300,000.00 in 45 years.
a. What annual rate of return will Keiko earn if she invests $420.00 today and receives $879.72 in 9 years?
% (Round to two decimal places.)
Suppose you makes a $1,000 initial investment today, a $4,000
additional investment at the end of year one, and another $500
investment at the end of year two. You had returns of 10% in year one,
2% in year two, and -5% in year three. What is the dollar-weighted
average return on your investments?
Select one:
a. -2.59%
b. 10.00%
c. 0.51%
d. -0.73%
e. 3.00%
Interest rate (with changing years). Keiko is looking at the following investment choices and wants to know what annual rate of return each choice produces.
a. Invest
$400.00
and receive
$790.15
in
9
years.
b. Invest
$3,600.00
and receive
$11,432.56
in
16
years.
c. Invest
$30,118.98
and receive
$100,000.00
in
20
years.
d. Invest
$34,767.89
and receive
$1,100,000.00
in
35
years.
Chapter 4 Solutions
Principles of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
Ch. 4 - True/false True or false? a. All stocks in an...Ch. 4 - Dividend discount model Respond briefly to the...Ch. 4 - Dividend discount model Company X is expected to...Ch. 4 - Dividend discount model Company Y does not plow...Ch. 4 - Constant-growth DCF model Company Zs earnings and...Ch. 4 - Dividend discount model Company Z-prime is like Z...Ch. 4 - Dividend discount model If company Z (see Problem...Ch. 4 - Prob. 8PSCh. 4 - Prob. 9PSCh. 4 - Free cash flow Under what conditions does r, a...
Ch. 4 - Prob. 11PSCh. 4 - Prob. 12PSCh. 4 - Horizon value Suppose the horizon date is set at a...Ch. 4 - Stock quotes Go to finance.yahoo.com and get...Ch. 4 - Two-stage DCF model Consider the following three...Ch. 4 - Constant-growth DCF model Pharmecology just paid...Ch. 4 - Two-stage DCF model Company Qs current return on...Ch. 4 - Cost of equity capital Each of the following...Ch. 4 - Growth opportunities Alpha Corps earnings and...Ch. 4 - Prob. 23PSCh. 4 - Two-stage DCF model Compost Science Inc. (CSI) is...Ch. 4 - DCF and free cash flow Permian Partners (PP)...Ch. 4 - DCF and free cash flow Construct a new version of...Ch. 4 - Valuing a business Mexican Motors market cap is...Ch. 4 - Valuing Tree cash flow Phoenix Corp. faltered in...Ch. 4 - Constant-growth DCF formula The constant-growth...Ch. 4 - DCF valuation Portfolio managers are frequently...Ch. 4 - Valuing a business Construct a new version of...
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