Register
if the present value of growing perpetuity is 214,the required rate of return is 10% and growth rate is 3%, what is cash flow in year1(round to nearest whole number) i
264,948 views
6 votes
6 votes
if the present value of growing perpetuity is 214,the required rate of return is 10% and growth rate is 3%, what is cash flow in year1(round to nearest whole number) i

User Holdfenytolvaj
by
2.6k points

1 Answer

10 votes
10 votes

Answer:

15

Step-by-step explanation:

PV= 214

rate of return 10%

(10+1)^1

11+3= 14

214/14= 15.2...= 15

User James West
by
4.0k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

1.6m questions

2.0m answers

Other Questions

If you buy a one-year bond for $4,000 and the issuer pays you back $5,000 at the end of one year, the interest rate on the bond is
The market value of the equity of Hudgins, Inc., is $582,000. The balance sheet shows $21,000 in cash and $192,000 in debt, while the income statement has EBIT of $93,000 and a total of $137,000 in depreciation
Kylie is risk averse and has $1,000 with which to make a financial investment. She has three options. Option A is a risk-free government bond that pays 5 percent interest each year for two years. Option
Elroy Rocket is entering his senior year as an accounting major and has a number of options for his summer break. His options for the 3 month break follow: (1) Work full time at a local accounting firm
In January of the current year, Dora made a gift of stock to her granddaughter. At the time of the gift, the stock was worth $15,000. Several months later in the same year after the gift, a $500 dividend
Link Copied!