Answer:
Answer A = $9,000
Answer B = $6,400
Answer C = $7,632
Answer D = $54,000
Answer E = $71,063
Explanation:
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Answer:
According to the basic DCF stock valuation model, the value an investor should assign to a share of stock is dependent on the length of time he or she plans to hold the stock.
A. True
Explanation:
The DCF (Discounted Cash Flow) method of stock valuation is based on the assumption of the time-value of money. This approach considers that the cash flow that is received today is much more than the same amount of cash flow received any other time in the future. And the time of the future receipt or payment affects the amount of the cash flow, with decreasing consequences based on increasing time into the future.
Answer:
The boat today is worth 100,440 dollars
Explanation:
We need to solve for the present value of the payment Fishermen's Corp will receive for the boat:
We will apply the formula for lump sum to each
cash flow and then add them together
Year Nominal Present Value
1 20000 18, 518
2 40000 34,293
3 60000 47,630
TOTAL 100,441
Answer:
value we place on this house when analyzing the option of using it as a professional office is $225000
Explanation:
Given data
house cost 4 year ago = $219,000
house valued = $239,000
real estate fees = $14000
property taxes = $4,000
to find out
What value should you place on this house
solution
we know if we sell house we should pay real estate fee
so we get need money to place is present cost - real estate fees
so cost will be
cost = house valued - real estate fees
cost = 239000 - 14000
cost = 225,000
so value we place on this house when analyzing the option of using it as a professional office is $225000