Answer:
PV= $37,204.70
Explanation:
Giving the following information:
Interest rate= 6% compounded semiannually= 0.03
Future value= $50,000
Number of periods= 5*2= 10
To calculate the initial investment to reach the objective, we need to use the following formula:
PV= FV/(1+i)^n
PV= 50,000/(1.03^10)
PV= $37,204.70
Answer:
no
Explanation:
my grandma retired so I know a little about retirement
Answer:
9.68 percent
Explanation:
Calculation to determine the firm's cost of equity
Using this formula
Cost of equity=[(Annual dividend×Increase in dividends×/Current price of common stock]+Dividends
Let plug in the formula
Cost of equity=[($1.22 × 1.024)/$17.15] + 0.024
Cost of equity=($1.24928/$17.15)+0.024
Cost of equity=0.0728+0.024
Cost of equity=0.0968*100
Cost of equity=9.68 percent
Therefore the firm's cost of equity is 9.68 percent
