Reference no: EM132489758

Question 1: bod is considering an investment in ventures capital that return nothing in the first three years $40000 in the forth year and $60000 a year in perpetuity after that what is the present value of the investment. given an interest rate of 6% per annum?

Question 2: bobs grandmother spend only $50 to buy a century old half-cent coin from her friend 1967 in 2018 it is expected to fetch $35000 at auction what annual rate of interest would have been earned if someone have bought the coin in 1967 for $50 and sold it 2018 for $35000.

Question 3: job is determent that he can afford to pay $800 per month towards purchasing a new convertible car. job notices an advertisement for a bank loan as a rate of 8% pa and he wants to make a month payments over the next five years how much can job borrow now to buy the sports car.

Question 4: lim who is 35 years old as just inherited $25000 and decide to use windfall towards her retirement she places the money in the bank which promises a return of 6% per year compounded monthly until her planed retirement in 25 years. how much will she have at retirement from this plan.

Question 5: 12% preference shares of sim ltd was issued at $4 per share currently market is expecting 16% return from similar risky preference share. calculate the market anticipated price for this preference share.

Question 6: current 8% bond of kim ltd pays coupon semi-annually this $1000 par value bond will mature after 12 years from now marked yield for simelair risky bond is 9%. what price you want to pay for this bond.

Question 7: 9% annual coupon paying bond of son ltd will mature after 8 year the bond will return $1000 at maturity and currently selling at $1052.50. calculate the yield maturity for this bond.

Question 8: analysts anticipate that earnings and dividends of so ltd share will grow at 20% for the next 2 years before settling down a constant 7% growth rate. market expect 12% return from this son share that has just paid a dividend $2.50 per share. what price is expected for son share by the analysts.