答案和详解如下： LOS d, (Part 3): Calculate and interpret a perpetuity (PV only). 1、Compute the present value of a perpetuity with $100 payments beginning four years from now. Assume the appropriate interest rate is 10 percent/yr. A) $683. B) $751. C) $909. D) $1000. The correct answer was B) Compute the present value of the perpetuity at (t=3). Recall, the present value of a perpetuity or annuity is valued one period before the first payment. So, the present value at t=3 is 100/0.10 = 1,000. Now it is necessary to discount this lump sum to t=0. Therefore, present value at t=0 is 1,000/(1.10)3 = 751 2、An investment offers $100 per year forever. If Peter Wallace’s required rate of return on this investment is 10 percent, how much is this investment worth to him? A) $500. B) $100 million. C) $10,000. D) $1,000. The correct answer was D) For a perpetuity, PV = PMT/I= 100/0.10 = 1,000 3、Given investors require an annual return of 12.5 percent, a perpetual bond (i.e., a bond with no maturity/due date) that pays $87.50 a year in interest should be valued at: A) $1,093. B) $875. C) $700. D) $70. The correct answer was C) 87.50/.125=$700. 4、Nortel Industries has a preferred stock outstanding that pays (fixed) annual dividends of $3.75 a share. If an investor wants to earn a rate of return of 8.5 percent, how much should he be willing to pay for a share of Nortel preferred stock? A) $44.12. B) $31.88. C) $37.50. D) $42.10. The correct answer was A) PV = 3.75/0.085 = $44.12. | 
发表于 2008-4-2 12:13
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