Reference no: EM132048297
Question: Present and Future Value of an Uneven Cash Flow Stream
An investment will pay $200 at the end of each of the next 3 years, $300 at the end of Year 4, $600 at the end of Year 5, and $700 at the end of Year 6. If other investments of equal risk earn 5% annually, what is its present value? Round your answer to the nearest cent. $
What is its future value? Round your answer to the nearest cent. $
Reaching a Financial Goal
You need to accumulate $10,000. To do so, you plan to make deposits of $1,050 per year - with the first payment being made a year from today - into a bank account that pays 6.75% annual interest. Your last deposit will be less than $1,050 if less is needed to round out to $10,000. How many years will it take you to reach your $10,000 goal? Round your answer up to the nearest whole number.
year(s)
How large will the last deposit be? Round your answer to the nearest cent. $
PV and Effective Annual Rate
Assume that you inherited some money. A friend of yours is working as an unpaid intern at a local brokerage firm, and her boss is selling securities that call for 4 payments of $50 (1 payment at the end of each of the next 4 years) plus an extra payment of $1,000 at the end of Year 4. Your friend says she can get you some of these securities at a cost of $850 each. Your money is now invested in a bank that pays an 8% nominal (quoted) interest rate but with quarterly compounding. You regard the securities as being just as safe, and as liquid, as your bank deposit, so your required effective annual rate of return on the securities is the same as that on your bank deposit. You must calculate the value of the securities to decide whether they are a good investment. What is their present value to you? Do not round intermediate calculations. Round your answer to the nearest cent.
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Prepare analysis that explains change in retained earnings
: Prepare an analysis that explains the change in retained earnings from $4,297 at the end of fiscal 2011 to $5,046 at the end of fiscal 2012.
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Intramolecular bond with oxygen
: Explain all forces and changes that the electron undergoes as it forms an intramolecular bond with oxygen to form a water molecule.
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How does this bias or stereotype impact the team
: What are the values, behaviors, and outcomes you hope to achieve through the transformative learning process?
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Calculate the dollar amount of the depletion recorded
: Calculate the dollar amount of the depletion recorded during the first year if $300,000 barrels of oil are extracted and sold during the year
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Determine how large will the last deposit be
: An investment will pay $200 at the end of each of the next 3 years, $300 at the end of Year 4, $600 at the end of Year 5, and $700 at the end of Year 6.
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What will be this year dividend payout ratio
: If the target capital structure is 50% debt and the rest equity, what will be this year's dividend payout ratio?
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Compute the weighted average number
: Weighted average shares outstanding - Compute the weighted average number of shares to be used in computing earnings per share for 2015
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Prepare the journal entry to record the accrual of interest
: Prepare the journal entry to record the issuance of the bonds. (Round answers to 0 decimal places, eg. 15, 250. Credit account tities are automatically).
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Difference between primary and secondary market
: What is the difference between a primary and a secondary market.
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