A record collector has agreed to sell her entire collection to a ...

[faduma]

A record collector has agreed to sell her entire collection to a historical museum in three years at a price of 100,000. The current risk-free rate is 7 percent. At what price should she value her collection today?
 
  What will be an ideal response?

Question 2

The firm's cost of a new issue of common stock is ________. (See Table 9.1 )
 
  A) 7 percent
  B) 9.08 percent
  C) 14.2 percent
  D) 13.4 percent

[coreycathey]

Answer to Question 1

100,000(1.07)-3 = 81,630

Answer to Question 2

C

[faduma]

Wow, this really help

[laurnthompson]

Thanks for the timely response, appreciate it