What's the future value of a 4%, 5year ordinary annuity that pays $700 each year? Round your answer to the nearest cent. If this was an annuity due, what would its future value be? Round your answer to the nearest cent.

A firm has debt of $7,000, equity of $12,000, a leveraged value of $8,900, a cost of debt of 7%, a cost of equity of 14%, and a tax rate of 30%. What is the firm's weighted average cost of capital?

Twenty years ago, a relative bought you a zero bond that matured at $1000 today. Zeroes pay no periodic interest and is calculated using the lump sum PV or FV formula. The stated interest rate during the 20year period was 2.32% and inflation average..

Excel Corporation has recently witnessed a period of depressed earnings performance. As a result, cash dividend payments have been suspended. Investors do not anticipate a resumption of dividends until 2 years from today, when a yearly dividend of $0..

You have found the following stock quote for RJW Enterprises, Inc., in the financial pages of today’s newspaper. 52WEEK YLD VOL NET HI LO STOCK (DIV) % PE 100s CLOSE CHG 130.25 88.38 RJW 2.50 2.0 15 17,907 ? − .73 What was the closing price for this..

Company "A" just paid a $1.30 dividend and analysts expect cash flows and dividends of the firm to grow at 20 percent for the next two years, 15 percent for the following two years and 6 percent annually afterwards. Stocks of this risk have required ..

Describe how each of the activities of financial managers is related to the primary objectives of a corporation or nonprofit organization; identify the objectives and be specific.

On January 1, an investment account is worth 500. On July 1, the value has increased to 600 and W is withdrawn from the account. On November 1, the value is 280 and 120 is deposited in the account. On January 1 of the following year, the investment a..

Suppose our company has a beta of 1.5. The market risk premium is expected to be 9%, and the current riskfree rate is 6%. What is cost of equity using CAPM?

Lewis Securities Inc. has decided to acquire a new market data and quotation system for its Richmond home office. The system receives current market prices and other information from several online data services and then either displays the informati..

We Do Bankruptcies is a law firm that specializes in providing advice to firms in financial distress. It prospers in recessions when other firms are struggling. Consequently, its beta is negative, −.5. If the interest rate on Treasury bills is 7% and..

A firm has a market value equal to its book value. Currently, the firm has excess cash of $10,200 and other assets of $28,800. Equity is worth $39,000. The firm has 900 shares of stock outstanding and net income of $3,600. What will the stock price p..
