the perpetual stock makes it payment in quarterly and the first payment is made on 5th quarter. So, for perpetutiy do A/i = 2/0.015. how 0.015 derives the payment is in quarterly so break 6% in quarterly which is 6/4= 1.5. In Calci. 2/.015 = 133.333 after doing A/i the value comes at 4th quarter 1 yRead more
the perpetual stock makes it payment in quarterly and the first payment is made on 5th quarter.
So, for perpetutiy do A/i = 2/0.015. how 0.015 derives the payment is in quarterly so break 6% in quarterly which is 6/4= 1.5.
In Calci.
2/.015 = 133.333 after doing A/i the value comes at 4th quarter 1 yrs back.
so at 4th quarter the value is 133.33.
now assume 133.33 is standing at 4 on the no line we need to take back to pv
time value of money
for perpetuity = PMT/I/Y 2/.05 = 40. is the answer B ?
for perpetuity = PMT/I/Y
2/.05 = 40.
is the answer B ?
Time Value of money candidate resource
the perpetual stock makes it payment in quarterly and the first payment is made on 5th quarter. So, for perpetutiy do A/i = 2/0.015. how 0.015 derives the payment is in quarterly so break 6% in quarterly which is 6/4= 1.5. In Calci. 2/.015 = 133.333 after doing A/i the value comes at 4th quarter 1 yRead more
the perpetual stock makes it payment in quarterly and the first payment is made on 5th quarter.
So, for perpetutiy do A/i = 2/0.015. how 0.015 derives the payment is in quarterly so break 6% in quarterly which is 6/4= 1.5.
In Calci.
2/.015 = 133.333 after doing A/i the value comes at 4th quarter 1 yrs back.
so at 4th quarter the value is 133.33.
now assume 133.33 is standing at 4 on the no line we need to take back to pv
FV = 133.33
I/Y = 1.5
N=4 = 125.6/ 126
i hope this clears u