A project costs $80 now and generates cash flows of $30, $20, $20, and $30 at the end of years 1, 2, 3, and 4. What’s its IRR?
Blog
You have been offered a job with an unusual bonus structure….
You have been offered a job with an unusual bonus structure. As long as you stay with the firm, you will get an extra $[c] every seven years, starting seven years from now. What is the present value of this incentive if you plan to work for the company for 42 years and the interest rate is [r]% EAR?
Suppose a five-year, $[f] bond with annual coupons has a pri…
Suppose a five-year, $[f] bond with annual coupons has a price of $[p] and a yield to maturity of [r]%. What is the bond duration? Hint: First calculate the amount of each coupon payment.
Suppose firm ABC will pay a $[d] dividend next year and the…
Suppose firm ABC will pay a $[d] dividend next year and the cost ofcapital is [r]%. Starting from year 1, the firm is expected to grow [g1]% a year until year [t], when its growth reduces to [g2]%. What is the value of the company?
When a fixed amount of ideal gas goes through an isochoric…
When a fixed amount of ideal gas goes through an isochoric process,
4. Suppose
4. Suppose
Suppose the risk free return is [rf]% and the market risk pr…
Suppose the risk free return is [rf]% and the market risk premium is [mrp]%. If the beta of Apple stock is [beta], what is the expected return according to CAPM?
To which organ system does structure # 1 belong? (one word…
To which organ system does structure # 1 belong? (one word)
If the temperature of a fixed amount of an ideal gas is incr…
If the temperature of a fixed amount of an ideal gas is increased, it NECESSARILY follows that
Two stocks have the following characteristics: Stock A S…
Two stocks have the following characteristics: Stock A Stock B T-bill E(r) [ra]% [rb]% [rf]%