1.You have accumulated $1,324,330 for your retirement. How much money can you withdraw for the next 11 years in equal annual end-of-the-year cash flows if you invest the money at a rate of 15.32 percent per year, compounded annually?

2. What is the present value of the following future amount?

$497,893, to be received 9 years from now, discounted back to the present at 8.96 percent, compounded daily.

Round the answer to two decimal places.

3. You have been offered the opportunity to invest in a project that will pay $1,678 per year at the end of years one through three and $14,075 per year at the end of years four and five. If the appropriate discount rate is 5.8 percent per year, what is the present value of this cash flow pattern?

Round the answer to two decimal places.

4. Large-cap stocks had the nominal rates of return of 11.91 percent. The rate of inflation during the last year was 2.44 percent. What is the real rate of return for large-cap stocks?

Round the answer to two decimal places in percentage form.

5. You are going to save money for your son’s education. You have decided to place $2,555 every half year at the end of the period into a saving account earning 10.03 percent per year, compounded semi-annually for the next 13 years. How much money will be in the account at the end of that time period?

Round the answer to two decimal places.

6. How many years will the following take?

$980 to grow to $24,368 if invested at 14.92 percent, compounded annually.

Round the answer to two decimal places.

7. You have decided to place $683 in equal deposits every month at the beginning of the month into a savings account earning 6.15 percent per year, compounded monthly for the next 3 years. The first deposit is made today. How much money will be in the account at the end of that time period?

Round the answer to two decimal places.

8. What is the present value of the following annuity?

$2,138 every year at the end of the year for the next 7 years, discounted back to the present at 19.06 percent per year, compounded annually?

Round the answer to two decimal places.

9. At what annual rate would the following have to be invested?

$3,578, to grow to $28,217, in 23 years.

Round the answer to two decimal places in percentage form

10. What is the accumulated sum of the following stream of payments?

$1,708 every year at the end of the year for 13 years at 9.42 percent, compounded annually.

Round the answer to two decimal places.

11. To what amount will the following investment accumulate?

$11,735, invested today for 34 years at 6.37 percent, compounded monthly.

Round the answer to two decimal places.

12. What is the present value of a $222 perpetuity discounted back to the present at 14.84 percent.

The answer should be calculated to decimal places.

13. What is the present value of the following annuity?

$4,715 every half year at the end of the period for the next 14 years, discounted back to the present at 4.41 percent per year, compounded semiannually.

Round the answer to two decimal places.

14. You plan to apply for a loan from Bank of America. The nominal annual interest rate for this loan is 12.66 percent, compounded daily (with a 365-day year). What is the effective annual rate, or EAR (annual percentage yield), of this loan?

Round the answer to two decimal places in percentage form.

15. A commercial bank will loan you $49,022 for 8 years to buy a car. The loan must be repaid in equal monthly payments at the end of the month. The annual interest rate on the loan is 10.23 percent of the unpaid balance. What is the amount of the monthly payments?

Round the answer to two decimal places.

How much is your options investment worth : How much is your options investment worth? What is your maximum gain? |

Determine the profit or loss per contract-transaction costs : When this position was closed out, the quoted price was 94-75. Determine the profit or loss per contract, ignoring transaction costs. |

What is the net amount raised and total indirect costs : What is the net amount raised? What are the total indirect costs? What are the total costs? What was the flotation cost as a percentage of funds raised? |

Invest in portfolio containing stock : You have $132,000 to invest in a portfolio containing Stock X, Stock Y, and a risk-free asset. how much money will you invest in Stock Y? |

What is the present value of the future amount : What is the present value of the annuity? What is the present value of the future amount? |

Compute the yield to maturity on old issue : Russell Container Corporation has $1,000 par value bond outstanding with 30 years to maturity. Compute the yield to maturity on the old issue. |

What is yield to call for these bonds : These are callable in 8 years at a call price of $650. Using semiannual compounding, what is the yield to call for these bonds? |

What is the value of bond : What is the value of a bond that has a par value of $1000, that has a coupon rate of 9.98 percent (paid annually), and that matures in 6 years? |

Contemplating replacement of one of its knitting machines : Coiner Clothes is contemplating the replacement of one of its knitting machines with a newer, and more efficient one. |

## According to the efficient market hypothesisAccording to the efficient market hypothesis, price of actively traded stocks ____. |

## The tractor using the straight line methodChris purchases a new tractor for $50,000. The expected life of the tractor is 3 years. He reckons that he can sell the tractor for $5,000 when he stops farming in 3 years. His farm’s tax rate is 34%. What is the yearly depreciation expense if Chris .. |

## Company leased an equipmentCompany leased an equipment for 5 year, for 6%, the total annual payment is $3,000. |

## What is the preferred stock price if required rate of returnThe growth rate for the firm's common stock is 7%. The firm's preferred stock is paying an annual dividend of $5. What is the preferred stock price if the required rate of return is 8%? |

## Calculate the earnings per share-market-to-book ratioAllison & Co. and Bee, Inc. reported the following numbers (in millions) for fiscal year 2012. Allison & Co. Bee, Inc. Net income $ 625.70 $ 247.24 Shares outstanding 87.20 57.25 Stock price $ 95.59 $ 40.26 Total equity $ 1,768.30 $ 989.48. Calculate.. |

## Uncertainties that are not quantifiableIf an investment has a 20%(0.20) probability of returning $1,000; a 30%(0.30) probability of returning $1,500; and a 50%(0.50) probability of returning $1,800; the expected value of the investment is: Uncertainties that are not quantifiable: Suppose .. |

## Opportunities of equal riskG Corporation is considering acquiring a newer, more modern machine. The machine, which requires an initial outlay of $4.5 million, will generate cash flows of $1.1 million at the end of each year for 5 years. Investors could earn 7.5 percent elsewhe.. |

## What are the required annual beginning of year lease paymentAjax desires to earn a 12 percent after-tax rate of return on this lease. What are the required annual beginning-of-year lease payments? |

## Diversified investmentsDiversified Investments. Hofstra, Inc., has no European business and has cash invested in six European countries, each of which uses the euro as its local currency. Are Hofstra’s short-term investments well diversified and subject to a low degree of .. |

## What is the value of the stock todayCould I Industries just paid a dividend of $1.35 per share. The dividends are expected to grow at a 19 percent rate for the next 5 years and then level off to a 7 percent growth rate indefinitely. If the required return is 13 percent, what is the val.. |

## Money would you invest in the zero-coupon bondYou intend to construct a portfolio with a duration of 5 year using a 7-year zero coupon bond and a 3-year 9% annual coupon bond with a yield to maturity of 12%. To achieve this goal, how much precenage of money would you invest in the zero-coupon bo.. |

## Using the appropriate time value of money tableUsing the appropriate Time Value of Money table (A)What is the amount a person would have to deposit today (present value) at 2 percent interest rate to have $4250 saved 10 years from now. |

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd