You are watching: Which of the following are characteristics of a perpetuity? check all that apply.

Your grandfather desires to develop a scholarship in his father’s name at a local university and also has stipulated that you will provide it. As you’ve committed to money a $15,000 scholarship yearly beginning one year from tomorrow, you’ll want to collection aside the money for the scholarship instantly. At tomorrow’s meeting through your grandfather and also the bank’s representative, you will certainly must deposit ___________ (rounded to the nearemainder totality dollar) so that you have the right to fund the scholarship forever, assuming that the account will certainly earn 4.50% per annum each year.

Oops! The bank representative just reported that he misquoted the obtainable interest price on the scholarship’s account. Your account have to earn 7.00%. The amount of your required deposit should be revised to____________. This says tright here is (an inverse / a direct) relationship in between the interemainder price earned on the account and also the existing value of the perpetuity.

### Want to watch this answer and also more?

Experts are waiting 24/7 to administer step-by-step options in as quick as 30 minutes!*

See Answer*Response times may differ by topic and question intricacy. Average response time is 34 minutes for passist subscribers and also might be longer for promotional provides.

Q: In New York, you have the right to exadjust $1 for €0.8355 or £0.6006. Suppose that, in Berlin, £1 prices €1.1722. ...

A: Triangle arbitrage is provided when the trader can advantage from the difference in the exadjust rate of t...

Q: Assume Lavender Corporation has actually a industry value of $4 billion of equity and a industry worth of $19.8 b...

A: As such, the weight of equity for calculating the WACC is 16.81%.

Q: Inigma Inc., is a startup firm created 2 years back. As part of a series A fundelevating round, Timit...

A: Click to see the answer

Q: PQR, Inc., has actually an problem of desired stock outstanding that pays a $3.75 dividend every year, inper...

A: Click to watch the answer

Q: Question 10

A: Futura worth annuity formula is used to calculate the worth of the retirement account which earns 9%...

Q: In 2018, Caterpillar Inc. had actually around 730 million shares outstanding. Their book worth was $30.0 per s...

A: a)The computation of book debt to worth proportion is as follows:Hence, the book debt to value proportion i...

Q: The risk-complimentary price is 3% and the supposed price of return on the sector portfolio is 8%. a. Calcula...

A: Part a:Given that;Risk free rate is 3%Market rerotate is 8%The worth of beta is 2.16

Q: A perpetuity will certainly pay $900 per year, starting five years after the perpetuity is purchased. What is ...

A: Computation of perpetuity at t=4:

Q: Find the forced monthly payment to accumulate 2,000 in 1 year and also five months at an APR of 4.34 % ...

A: Future worth annuity is the future worth of series of cash flows calculated at stated rate for gi...

Q: Joshua borrowed $800 for one year and also paid $40 in interest. The financial institution charged him a organization charge of...

A: Annual Percentage Rate (APR) is the actual yearly price incurred by the borrower on the amount borrow...

Q: A company's fixed operating prices are $740,000, its variable costs are $2.25 per unit, and the produ...

A: PaticularsAmountSales price per unit 4.65Less Variable Expenses per unit ...

Q: You are evaluating 2 different silsymbol wafer milling equipments. The Techron I prices $258,000, has a...

A: Equivalent Annual price (EAC) is the complete price incurred by the firm each year for operating and also ma...

Q: what is the difference between co-pay and coinsurance

A: Coinsurance and also copays are various variants of expense sharing plan in between wellness insurance c...

Q: Future value of an plain annuity: Cecelia Thomas is a sales executive at a Baltieven more firm. She is...

A: Future worth of a regular payment (PMT) of $3000 at the end of a duration (NPER) of 40 years at a disc...

Q: Describe the features of standard bonds and also modern bonds

A: Traditional bonds can be categorized in to two forms, Secured and unsecured bonds. Bonds which have actually ...

Q: Inigma Inc., is a startup firm formed 2 years ago. As component of a series A fundincreasing round, Timit...

A: a)Series A has proposed a total investment of $12 M in 6M convertible wanted stock. The aggregat...

Q: Bowie bonds were first issued in 1997 once the singer and also songwriter David Bowie partnered through Prud...

A: Present Amount = $50,000,000Time Period = 10 yearsNumber of Payments in year = 12Total number of ...

Q: Langdon & Co. concerns bonds through a face worth of $50,000 for $51,000. Each $1,000 bond carries 10...

A: We must separate the value assigned to the bonds and also the warrants. As a very first action we will certainly calc...

Q: A mature manufacturing firm simply paid a dividend of $588 however monitoring expects to mitigate thepayout...

A: Introudction :Dividend = 5.88Growth price lessened = 4.32%compelled return = 8.46%as per the above ...

Q: Please help me through 9-9 ??♀️

A: a.Annuity Amount (pmt) = $400Time Period (nper) = 10 YearsRate (rate) = 10%Future Value (fv) = $...

Q: Two investors are evaluating IBM’s stock for possible purchase. They agree on the supposed value of ...

A: Yes, both the investor need to pay exact same price for the stock.Since, both the investors have actually exact same numb...

Q: The stock price of XYZ Co. is $24.82. Investors need an 8.46 percent price of rerevolve on similarst...

A: Click to check out the answer

Q: Find the present value, using the current value formula and a calculator. (Round your answer to the ...

A: Thus, the existing value is $6,313.60.

Q: You are to pay €360,000 on May 16. Today’s spot price is $1.10/€. The forward rate is $1.12/€. On M...

A: You have asked a question through multiple sub components. I have actually addressed the first three sub parts. Prental fees...

Q: n 2018, Caterpillar Inc. had actually about 656 million shares impressive. Their book worth was $31.0 per sh...

A: The question is based upon the principle of debt to equity proportion calculation. The ratio can be based on ...

Q: You are evaluating the potential purchase of a tiny organization through no debt or preferred stock that i...

A: a) Value of the firm if the cash flow is prospering at 0% would certainly be sindicate calculated as below:Answer:...

Q: . If you borrow $25,000 from a local finance company and also you are required to pay $4,424.50 per year ...

A: Given values:Present out worth (PV) is $25,000.Annual payments (PMT) are $4,424.50.Maturity period (N...

Q: Verano Inc. has actually 2 company divisions- a software program product line and a waste water clean-up product l...

A: The price of resources provided to evaluate a decision must be meaure of the riskiness of the linked ...

Q: Plank’s Plants had net revenue of $10,000 on sales of $100,000 last year. The firm passist a dividfinish of...

A: Dividends Passist out =$400Net Income, NI = $10000Dividfinish Payout Ratio = Dividfinish / Net incomeDPR =...

Q: Huey, Dewey and also Louie are triplets. They are 25 years old and are trying to set up savings plans for...

A: Tip 1:The question is based on the concept of time worth of money, the worth of money readjust via ...

Q: A bond that pays interest yearly has actually a 6 percent promised yield and also a price of $1,025. Annual inte...

A: Bond Price = $1,025Yield Rate = 6% or 0.06Basis Point = (-) 0.5% or (-) 0.005 The calculation of...

Q: PV-Ordinary Annuity.9-16 Find the current worths of the following ordinary annuities:a.Various Co...

A: Present out worth of simple annuity with compounding is calculated as below:Answer: Present out worth of...

Q: 1. What is the Shape of the Yield Curve today? What does that indicate that theMarket is pricing int...

A: “Hey, because tbelow are multiple questions posted, we will certainly answer first question. If you want any type of spec...

Q: You should evaluate a proposal to buy a new milling machine. The purchase price of the milling machine...

A: 1.Those prices are already spent prior to taking the decision of investment and also can’t be respanned is ...

Q: If you purchased a ten-year corporate bond, $1,000 par worth, via a 5 percent coupon, and also unexpectedly ...

A: To determine the existing worth, we must usage the existing price or yield to maturity (YTM) to discou...

Q: I require help

A: 20X1:Total Current Assets = $75,000Total Current Liabilities = $55,000 The calculation of the Cu...

Q: Allen Company bought a brand-new copy machine to be depreciated directly line for 3 years for usage by s...

A: Tbelow are three sections of cash flows, a) Cash circulation from operating tasks, b) Cash flow from in...

Q: HQZ Inc., has just phelp a dividfinish of $4.49 per share and also has actually announced that it will rise thedi...

A: Present out value of all the dividends passist for next 4 years is the price meant to be paid. Dividends...

Q: 5 year treasury notes are presently yielding 5.75%, and you have actually uncovered the following interemainder premiu...

A: Introduction :Current yield ( current price of return)= 5.75%Inflation premium 2.50%Liquidity prem...

Q: Calculate the monthly finance charge for the credit card transactivity. Assume that it takes 10 days f...

A: As per the previous balance methodCalculation of finance charges for a billing cycle, supplies the bal...

Q: The table has the Sales estimates for the next year.Sales are built up as follows:In the mont...

A: Cash arsenal in November will be 20% of August sales, 14% of September Sales, 23% of October Sale...

Q: Williams Industries has decided to borrow money by issuing perpetual bonds through a coupon price of 6.5...

A: If market interemainder rate is 8%, then Price in Year 1 would beIf sector interemainder price is 5%, then Pr...

Q: Perpetuity: Your grandpa is retiring at the end of following year. He would prefer to encertain that his h...

A: Note: I have provided the calculation utilizing both formula and also excel.Perpetuity is a type of cash circulation t...

Q: Companies that use debt in their resources framework are said to be making use of financial leverage. Using le...

A: Since you have actually posted a question with multiple sub-components, we will deal with initially 3 sub-parts for yo...

Q: HelpSave & ExitSubmitA stock you are evaluating is intended to endure supernormal expansion in d...

A: Recontact that the price of the stock is nopoint yet current value of all the future dividends it's exp...

Q: Chapter 3 Concern 5

A: The debt proportion is characterized as the ratio of the complete liabilities to the total assets of the agency. ...

Q: Can the actual real price of interemainder be negative? When ? Can the intended genuine price be negative?

A: Yes, the actual genuine interest rate can be negative. This can happen once the actual inflation rate i...

Q: A semiyearly payment bond through a $1,000 par has actually a 7 percent quoted coupon rate, a 7 percent promised...

A: Duration of a bond can be calculated using DURATION function of Microsoft Excel. The input parameter...

Q: Based on the complying with probability distribution, what is the security's expectedExpected Return11-...

A: Expected return of the defense is calculated as the sum of the product of probability and respectiv...

See more: How To Change Name On Pokemon Go Name After New Update, Pokemon Go Finally Lets You Change Your Name

Q: What does issuing equity instea of debt signal about the financial health of a company?

A: Debt signaling is a theory which helps in determining the activity of stock prices. When a company a...