How to figure out a discount rate?
A stock sells for . The next dividend will be per share. If the rate of return earned on reinvested funds is 15 percent and the company reinvests 40 percent of earnings in the firm, what must be the discount rate?
In: Coupon Q&A · Tagged with: dividend, earnings, rate of return, stock
What is the standard Discount rate in calculating Net Present Value for real estate?
I have a rental and I need to set the price accordingly. NPV is Net Present Value, which is a tool to determine whether an investment is worth it or not within a certain discount rate (the minimum rate of return we want in percent). The building is located in a residential area, a gated [...]
In: Coupon Q&A · Tagged with: college students, housing community, present value, rate of return, residential area
how do i find the coupon rate without using a caluclator for this question?
A company sold an issue of 30-year bonds for 07.20. Investors required rate of return is 7.75%s semiannually. what is the coupon rate of these bonds?
In: Coupon Q&A · Tagged with: 30 year bonds, coupon rate, investors, rate of return
What should the discount rate be for evaluating a business project?
A business is considering a 0,000 project. The current annual rate of inflation is 4%. One option is to take out a loan for 8.5% for the investment. The current production rate of return is 9.5%. If the company was to invest the 0,000 instead of carrying out the project, the expected rate of return [...]
In: Coupon Q&A · Tagged with: annual rate of inflation, project option, rate of inflation, rate of return
How do you calculate total rate of return for the following coupon bond?
Purchase price of 30, coupon payment of 5, sold for 05 after one year.
In: Coupon Q&A · Tagged with: coupon bond, coupon payment, rate of return