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patriot [66]
3 years ago
6

You would like to establish a trust fund that would provide annual scholarships of $100,000 forever. How much would you have to

deposit today in one lump sum to achieve this goal if you can earn a guaranteed 4.5 percent rate of return?
Business
1 answer:
aivan3 [116]3 years ago
8 0

Answer:

$2,222,222.22

Explanation:

The data provided in the question

Annual scholarship provided = $100,000

Guaranteed rate of return = 4.5%

So by considering the above information, the amount i.e deposited today is

= Annual scholarship provided ÷ Guaranteed rate of return

= $100,000 ÷ 4.50%

= $2,222,222.22

By dividing the annual scholarship by the rate of return we can get the deposited amount

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The statement is: False.

Explanation:

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3 years ago
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Answer:

The firm's cost of equity is C. 14.05 percent

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Hi, we need to use the following formula in order to find the cost of equity of this firm.

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