Which figure in this worksheet is the Present Value of the company in 2014? * *****I think it is(13,617.88) A1.Interest Rate8%FCF - 2015 FCF -2016 FCF -20176,082.00FCF - YearsAmounts*6,007.003,573.00Pv*(5,631.48)(5,150.03) (2,836.36)Total Pv*|(13,617.88)*In millionsPv=FVN/(1+I)^NPV(,N,0,FV)The PV is NOT a negative number. It is a posiive number. This negative values calculated hereare a result of the PV formula only

The present value is calculated today to determine the present value of future cashflows at the…

Answered: A1. Interest Rate 8% FCF - 2015 FCF…

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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q10. Which would you prefer?a. An investment paying interest of 12 percent compounded annually.b. An investment paying interest of 11.7 percent compounded semiannually.
Q5. What is the PV of $165 000 in 4 years time at a compound interest rate of 6.35% p.a.?
16 - What is the cash value of the 120.000 TL receivables with a maturity of 20.04.2020, held by the enterprise as of the end of the period (31.12.2019), over 14% discount rate ? (Ignore fractions!) a) 113,432 TL B) 112,434 TL NS) 116,735 TL D) 117,117 TL TO) 115,568 TL
2) XYZ has cash of FC 100,000 on both April 30 and May 31, 2010. The applicable spot rates for April 30 and May 31 are as follows: April 30: 1US = 5FC May 31: 1 US= 4FC How much is the FX transaction gain or loss on May 31, 2010.
3.- WHAT INTEREST WILL PRODUCE A CAPITAL OF $25,000 AT 16.169% SEMI-ANNUAL IN 4 YEARSA) S 60323.8B) $62,000C) OTHERD) $60525.5
A bank has estimated its net income for 2020 is $2,000,000. It has also estimated the following ratios of its capital: CET1 = 7% Tier 1= 7.50% Tier 1+2= 9% Under Basel 2, what is the maximum, it can pay out in dividends? a $0.00 b $400,000.00 c $800,000.00 d $1,200,000.00
A bank has estimated its net income for 2020 is $2,000,000. It has also estimated the following ratios of its capital: CET1 = 7% Tier 1= 7.50% Tier 1+2= 9% Under Basel 2, what is the maximum, it can pay out in dividends? $0.00 $400,000.00 $800,000.00 $1,200,000.00
Q16. Clepsydra AE. currently has a required rate of return on equity equal to 10%, a realized return on equity or ROE equal to 10% and is expected to have a reinvestment rate of 60%. Based on these values, the P/FCFE1P/FCFE1ratio of Clepsydra AE. must be equal to? options- 1.67 50 16.67 25
E7-13 PMT PERIOD TYPE INTEREST PV 20,000 8 1 4% ? PV= ($140,041.09)
Consider the following balance sheet (in millions) for an FI: Assets Liabilities Duration = 10 years $950 Duration = 2 years $860 Equity $90 What is the FI's duration gap, and FI's interest rate risk exposure ? How can the FI use futures and forward contracts to put on a macrohedge? What is the impact on the FI's equity value if the relative change in interest rates is an increase of 1 percent? That is, DR/(1+R) = 0.01. Suppose that the FI in part (c) macrohedges using Treasury bond futures that are currently priced at 96. What is the impact on the FI's futures position if the relative change in all interest rates is an increase of 1 percent? That is, DR/(1+R) = 0.01. Assume that the deliverable Treasury bond has a duration of nine years. If the FI wants to macrohedge, how many Treasury bond futures contracts does it need?
Q1-14 Suppose the expected spot rate (after 1 year) for euros (in terms of dollars) is $1.50, the current interest rate on euro deposits is 4.5%, and the current interest rate on dollar deposits is 5.5%. What current spot rate would satisfy the uncovered interest parity (UIP) equation? a. $1.65 b. $1.50 c. $1.25 d. $1.485
Question content area top Part 1 Calculate the percentage return on a 1-year Treasury bill with a face value of $10 comma 00010,000 if you pay $9 comma 764.359,764.35 to purchase it and receive its full face value at maturity.

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