Calculate the future value of an annuity

Reference no: EM13833846

Final Exam

Calculate the Future Value of an Annuity that has the following characteristics: (a) PMT: $956, (b) RATE: 8%, and (c) NPER: 20.
Determine how much you would be willing to pay for an annuity due that has the following characteristics: (a) PMT: $6,200, (b) RATE: 6%, and (c) NPER: 20.
How much would you be willing to pay for a bond that pays semi-annual coupon payments and has the following characteristics: (a) NPER: 12, (b) YTM: 7%, and Coupon Payment: $31.25.
What is the maximum price that you would be willing to pay for a no-growth stock that has the following characteristics: (a) Dividend (Has Paid): $2.33 and (b) Required Rate of Return: 15%.
What is the maximum price that you would be willing to pay for a constant growth stock that has the following characteristics: (a) Dividend (Has Paid): $1.25, (b) Growth: 5%, and (c) Required Rate of Return: 7%.
What is the maximum price that you would be willing to pay for a non-constant growth stock that has the following characteristics: (a) Non-Constant Growth Rate: 15%, (b) Constant Growth Rate: 5%, (c) Dividend (Has Paid): $3.50, and (d) Required Rate of Return: 12%.
What is the current yield on a bond that has the following characteristics: (a) Price: $965, (b) Coupon Rate: 5%, (c) YTM: 6%, and (d) NPER: 11.
What is the Expected Rate of Return on Stock XYZ given the following information (Use CAPM): (a) Expected Return on the Risk Free Asset: 2%, (b) Expected Rate of Return on the Market: 10.23%, and (c) Beta for XYZ Stock: 1.18.
What is the Beta for XYZ Company, given the following information: (a) Expected Return on Company XYZ’s Stock: 12%, (b) Expected Return on the Risk Free Asset: 2%, and (c) Expected Rate of Return on the Market: 10%.
Calculate the YTM on a bond with the following characteristics: (a) Price: $1,231, (b) Coupon: $45.00, and (c) NPER: 13.
Calculate Company A’s weighted average cost of debt, given the following information: (a) Tax Rate: 20%, (b) Average Price of Outstanding Bonds: $956, (c) Coupon Rate: 4%, (d) NPER: 15, (e) Debt: $33,000,000, (f) Equity: $24,000,000, and (g) Preferred Stock: $5,000,000.
Calculate Company B’s weighted average cost of equity, given the following information: (a) Dividend: $2.50, (b) Growth Rate: 5.2% (c) Price: $35.20, (d) Debt: $33,000,000, (e) Equity: $24,000,000, and (f) Preferred Stock: $5,000,000.
Calculate Company C’s weighted average cost of preferred stock, given the following information: (a) Coupon Payments: $5.36, (b) Price of Preferred Stock: $95.50, (c) Debt: $33,000,000, (d) Equity: $24,000,000, and (e) Preferred Stock: $5,000,000.
Calculate Company D’s weighted average cost of capital, given the following information: (a) Tax Rate: 20%, (b) Average Price of Outstanding Bonds: $925.50, (c) Coupon Rate (Debt): 5%, (d) NPER (Debt): 15, (e) Dividend: $3.25, (f) Growth Rate: 7%, (g) Price (For stock): $42.60, (h) Dividend on Preferred Stock: $3.65, (i) Price of Preferred Stock: $46.25, (j) Debt: $10,000,000, (k) Equity: $15,000,000, and (l) Preferred Stock: $2,000,000.
Calculate Company E’s weighted average cost of equity, given the following information: (a) Expected Return on the Market: 9.5%, (b) Beta for Company E: 1.23, (c) Expected Risk Free Rate of Return: 3%, (d) Debt: $33,000,000, (e) Equity: $24,000,000, and (f) Preferred Stock: $5,000,000.Note: For Problems 16 through 21 use the data provided in Table 1

Table 1: Cash Flow Summary
Year	Project A	Project B
0	-30000	-30000
1	15000	12500
2	15000	10000
3	10000	15000
4	10000	15000

If Company XYZ has a WACC of 6% and the two projects are independent, which project would you accept based upon NPV rules?
If Company XYZ has a WACC of 24% and the two projects are mutually exclusive which project would you accept based upon NPV rules?
What is the Internal Rate of Return for Project A?
What is the Profitability Index for Project B?
What is the Payback Period for Project B?
What is the Crossover Rate for Project’s A and B?
Calculate the difference between daily and annual compounding, given the following information: (a) PV: $23,000, (b) NPER: 30, and (c) RATE: 5%.
Calculate the PMT on a mortgage, given the following information: (a) PV: $325,000, (b) RATE: 3.5%, and NPER: 30.
Calculate the present value of a lump sum payment with the following characteristics: (a) RATE: 4%, (b) NPER: 11, and (c) FV: $62,233.
Calculate the RATE given the following characteristics: (a) PV: $32,000, (b) FV: $100,000, and (c) NPER: 10.
Calculate the NPER given the following characteristics: (a) PV: $25,000, (b) FV: $125,000, and (c) RATE: 6.2%.
Calculate the RATE given the following characteristics: (a) PMT: $11,250 (you are paying), (b) FV: $15,000, and (c) NPER: 4.
Calculate the required rate of return on a company’s stock that has the following characteristics: (a) Constant Growth Rate: 10%, (b) Price: $25.00, and (c) Dividend (Has Been Paid): $2.75.

Reference no: EM13833846

Questions Cloud

Explain job cost to manage and control its operations : Bergen Community College can/will/should use job cost to manage and control its operations just like for-profit corporations.

What would the depreciation : What would the depreciation be for each of the first three years? The building has a value of $190,000 (the remaining $50,000 is land value, which doesn’t depreciate). Assume straight line depreciation with a 27.5 year write-off.?

Why did the english not try to settle north america : Why did the English not try to settle North America

Compare alternative dispute resolution practices : Explore the processes and key issues in conducting effective and legally defensible workplace investigations and analyze HR best practices for administering the internal grievance process.

Calculate the future value of an annuity : Final Exam Calculate the Future Value of an Annuity that has the following characteristics: (a) PMT: $956, (b) RATE: 8%, and (c) NPER: 20. Determine how much you would be willing to pay for an annuity due that has the following characteristics: (a) ..

What is the expected value of perfect information on reserve : What is the value of imperfect information provided by the G&G? Is it more or less than the value of perfect information and why - What is the expected value of perfect information on reserves?

Compare the criminal and civil legal systems : Describe the typical perpetrator of this crime with regards to gender, race, age, and socioeconomic status. Compare and contrast the criminal and civil legal systems regarding penalties, burden of persuasion, and key players

Calculating the present value of a bond : calculating the present value of a bond) If a corporate bond with a face value of $1,000 has 24 years to go until it matures, has a coupon interest rate of 5.7% and a yield to maturity (YTM) of 4.201%, what should be its price in the bond market (ie..

Address of three double variables : Problem 1: Write and test a function that takes the address of three double variables as arguments and that moves the value of the smallest variable into the first variable, the middle value to the second variable, and the largest value into the t..

User Account

All Pages