What is the future value of annuity at the end of five years
You invest in an ordinary annuity of $3,000 annually at 7% annual interest. What is the future value of the annuity at the end of 5 years?
Rate per period = 5.751
Future Value?
Amount of investment?
Amount of interest earned?
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Explain briefly the dividend irrelevance theory that was put forward by Modigliani and Miller. What were the key assumptions underlying their theory?
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