QUESTION 2. Determine theamount of money that needs to be deposited 5 years from now towithdraw $6,000 per year for 7 years beginning 10 years from now ifthe interest rate is 8% per year. Annual Withdrawl amount $6,000.00 Number of years to withdraw the amount 7 years Interest rate 8% per year Calculating Present ValueAnnuity […]
QUESTION 8-3. (Problem 8-24) The following table summarizes theyields to maturity on several one-year, zero-couponsecurities:SecurityYield %Treasury3.1AAA Corporate3.2BBB Corporate4.2B Corporate4.9a. What is the price (expressed as a percentage of theface value) of a one-year, zero-couponcorporat (a) Face Value (or) Par value of bond (F) = $1000 Number of Years toMaturity(t) = 1 year Coupon Rate (C) […]
QUESTION Miss Nadia has to choose the better of two equally costly cash flow streams,annuity A and annuity B. Annuity A is an annuity due with a cash inflow of&nbs Annuity A Type of Annuity Annuity due Annual Cash Inflow 9000 No of Periods 6 Years Rate 15% From the Future Value of AnnuityDue Tables, […]
QUESTION Darcy Inc. has just paid out a dividend (annual) of$2.40 per share. The company is in a state of rapid growth of12%, which can only be sustained for the next 4 years. Afterthat, its earnings growth is expected to drop to a long-termsustainable growth of 4%. Its dividends will grow at Dividend just paid […]
QUESTION general cereal common stock dividends have been growing at an annual rate of 7 percent per year over the past 10 years. current dividends is $1.70 per share. what is the current value of share of this stock to an investor who requires a 12 percent rate of return if the dividends are expected […]
QUESTION the federal trial court are known as____courts.a)equityb)common lawc)districtd)federal counrty13. if a jury is not requested for a case, then:a)ahung jury will be foundb)only the defendant can dismiss the casec)the case will automatically bt dismissedd)the presiding judge will determine the facts The United States districtcourts are the general trialcourts of the United States federal court […]
QUESTION Discuss on Short Term Vs. Long Term FinancialDecisions Capitalinvestment decisions or techniques are long-term financialdecisions about which projects receive investment, whether tofinance that investment with equity or debt, and when or whether topay dividends to shareholders. Capital investment decisions are long-term corporate finance decisions relating to fixed assets and capitalstructure. Corporate management seeks to […]
QUESTION Suppose you have $50,000 that you would like to invest in twocompanies. Bethlehem Books and Allentown Audio. Bethlehem has arate of return of 10% and standard deviation 15%. While Allentownhas a return of 15% with a standard deviation of 20%. Thecorrelation coefficient between them is .5. Your portf let w denote the weight of […]
QUESTION Daniel deposits $2,000 per year at the end of the year for the next 15 years into an IRA account that currently pays 7%. How much will Daniel have on deposit at the end of 15 years? Each Year Deposited Amount (PMT) = $2,000 Interest rate per period (i) = 7% Number of Period […]
QUESTION Nell, single and age 38, had the following income and expenseitems in 2008:Nonbusiness baddebt &n 1040 :Salary 40000interestincome 1000schdule c (baddebt) (2000)sch d** (1500):total income andAGI 37500 **sch D LT gain (4000*.28) 1120 baddebt 6000 STcapial loss 3000total STlosses 9000:netloss 7880: The loss on line 16or c ( $3,000), or if married filing separately, […]
