You have $100,000 to donate to your college. you want to endow a perpetual scholarship that makes its first payment in 1 year. if the college's discount rate is 4%, how large will the annual scholarship payment be? berk, jonathan; demarzo, peter; harford, jarrad (2017-01-18). fundamentals of corporate finance (berk, demarzo & harford, the corporate finance series) (page 121). pearson education. kindle edition.

On december 31, 2013, coronado company issues 173,000 stock-appreciation rights to its officers entitling them to receive cash for the difference between the market price of its stock and a pre-established price of $10. the fair value of the sars is estimated to be $5 per sar on december 31, 2014; $2 on december 31, 2015; $10 on december 31, 2016; and $8 on december 31, 2017. the service period is 4 years, and the exercise period is 7 years. prepare a schedule that shows the amount of compensation expense allocable to each year affected by the stock-appreciation rights plan.

Varto company has 9,400 units of its sole product in inventory that it produced last year at a cost of $23 each. this year’s model is superior to last year’s, and the 9,400 units cannot be sold at last year’s regular selling price of $42 each. varto has two alternatives for these items: (1) they can be sold to a wholesaler for $8 each, or (2) they can be reworked at a cost of $251,100 and then sold for $34 each. prepare an analysis to determine whether varto should sell the products as is or rework them and then sell them.

If a business is in need of working capital, one option is to use a(n) that will buy the company's account receivables and then handle their collection for a fee.