Perpetuity - Study guides, Class notes & Summaries

FNCE 401 Final Exam All Possible Questions and Answers 2024/2025 Fully Solved 100%;Athabasca University FNCE 401 Final Exam All Possible Questions and Answers 2024/2025 Fully Solved 100% Part I – Multiple Choice Questions: (25 × 2 = 50 marks) 1. Corporate shareholders are best protected from incompetent management decisions by a. the ability to engage in proxy fights. b. management's control of pecuniary rewards. c. the ability to call shareholder meetings. d. the threat...

CFA Level 1 Formulas question & answers 100% correct 2024 Price change based on convexity - correct answer -duration(change in yield)+1/2(convexity)(change in yield)^2 Effective Duration - correct answer Required if a bond has embedded options: [(v-)-(v+)]/[2V0(change in curve)] Modified Duration - correct answer [(v-)-(v+)]/[2V0(change in yield)] Future Value - correct answer PV(1+(I/Y)^N) PV - correct answer FV/(1+r)^n PV of perpetuity - correct answer PMT / discount rate Ap...

1. How much time is given to pass the NV salesperson exam? - correct answer 4 hours - 240 minutes or 4 hours total 2. How many continuing education hours are required? - correct answer 24 hours - State of NV requires salesperson to complete 24-hours of continuing education every 2 years in each 4 year licensing term 3. In order to obtain a NV real estate license you must have a HS diploma? - correct answer True - you must have a HS diploma or equivalent 4. How often must you renew your ...

Matilda Industries pays a dividend of $2.25 per share and is expected to pay this amount indefinitely. If Matilda's cost of capital is 12%, what would Matilda's stock price be expected to be? correct answers This is the classic zero-growth dividend case, which can be solved as a perpetuity: P = D/R = $2.25/.12 =$18.75 Staal Securities will pay a dividend of $3.40 next year. The company promises to increase its dividend by 4.5% per year indefinitely. If you require a return of 11.0% on you...

WALL STREET PREP PREMIUM EXAM WITH 100 QUESTIONS AND CORRECT ANSWERS (100% VERIFIED ANSWERS) GRADED A+ LATEST EXAM (NEW!!)/ ALSO CONTAINS 27 EXCEL QUESTIONS AND ANSWERS FOR YOUR REVIEW On January 1, 2014, shares of Company X trade at $6.50 per share, with 400 million shares outstanding. The company has net debt of $300 million. After building an earnings model for Company X, you have projected free cash flow for each year through 2020 as follows: Year Free Cash Flow 250 280 You...

LBO Modeling Exam Wallstreet Prep Questions With Answers Latest Updated 2024/2025 (Graded A+) What is generally not considered to be a pre-tax non-recurring (unusual or infrequent) item? - ANSWER>>>Extraordinary gains/losses what is false about depreciation and amortization - ANSWER>>>D&A may be classified within interest expense Company X's current assets increased by $40 million from while the companies current liabilities increased by $25 million over the same period....

§Perpetuity FORMULA - •PV = PMT/I §Sharpe Ratio FORMULA - •(Return - risk-free rate) / standard deviation §CAPM FORMULA - •ri = rRF + (rM - rRF)bi What is the time value of money? - The concept that money you have now is worth more than the identical sum in the future due to its potential earning capacity. §Why is inflation so important for cash flows? - Important for inflation, a dollar is worth more today than in the future due to interest rates increasing. HOW DOES COMPOUNDIN...

Wall Street Prep Exam:Transaction Comps Modeling Wall Street Prep Exam Questions and Answers | 100% Correct. Company X's current assets increased by $40 million from while the companies current liabilities increased by $25 million over the same period. the cash impact of the change in working capital was a decrease of 15 million 4. the final component of an earnings projection model is calculating interest expense. the calculation may create a circular reference because interest expense...

Wall Street Prep Exam Questions With 100% Correct Answers Latest 2024/2025 (GRADED A+) What is generally not considered to be a pre-tax non-recurring (unusual or infrequent) item? Extraordinary gains/losses what is false about depreciation and amortization D&A may be classified within interest expense Company X's current assets increased by $40 million from while the companies current liabilities increased by $25 million over the same period. the cash impact of the change in working capi...