Reference no: EM131185223
1. What is the present value of $3,000 per year for 8 years discounted back to the present at 9 percent is $_____(Round to the nearest cent)
2. You are graduating from college at the end of this semester and after reading The Business of Life box in this chapter, you have decided to invest $4,400 at the end of each year into a Roth IRA for the next 40 years. If you earn 6% compounded annually on your investment, how much will you have when you retire in 40 years? How much will you have if you wait 10 years before beginning to save and only make 30 payments into your retirement account? (Round to nearest cent)
3. Mr. Bill S Preston, Esq., purchase a new house for $90,000. He paid $10,000 upfront and agreed to pay the rest over the next 30 years in 30 equal annual payments that include principal payments plus 14 percent composed interest on the unpaid balance. What will these equals payments be? (Round to nearest dollar)
4. To pay for your child’s education, you wish to have accumulated $13,000 at the end of 14 years. To do this, you plan to deposit an equal amount into the bank at the end of each year. If the bank is willing to pay 12% compounded annually. How much must you deposit each year to obtain your goal? (Round to nearest cent)
5. How long it take to pay off a loan of $55,000 at an annual rate of 11 percent compounded monthly if you make a monthly payments of $650? Use five decimal places for the monthly percentage rate in you calculation. (Round to one decimal place).
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How does this apply to vertical equity
: The Rocky Mountain Wranglers are a professional football team in a large metropolitan city. They have competed on the gridiron in this city for the past 50 years. The people in this city and area of the country are very passionate and supportive of t..
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What is operating cash flow and free cash flow
: Free Cash Flow You are considering an investment in Cruise, Inc. and want to evaluate the firm's free cash flow. From the income statement, you see that Cruise earned an EBIT of $206 million, paid taxes of $32 million, and its depreciation expense wa..
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Compute the payback period and the IRR-NPV
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Composed interest on the unpaid balance
: Mr. Bill S Preston, Esq., purchase a new house for $90,000. He paid $10,000 upfront and agreed to pay the rest over the next 30 years in 30 equal annual payments that include principal payments plus 14 percent composed interest on the unpaid balance...
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What are the implied APR and EAR of the lease
: The following are two popular approaches used by automobile dealers: Cash Rebate Versus Low Rate Dealer Financing You are given two mutually exclusive options from the dealer on a $20,000 car: What are the “implied” APR and EAR of the lease? Should y..
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Value of this stock today based on the discounted model
: ABC tutoring Consultants stock doesn't now pay dividends. Investors expect that it will begin paying a dividend of $2/share in exactly 5 years at time 5. That is, they forecast that D5 will be $2/share. Investors expect that the dividend will then re..
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Calculate the most recent dividend and dividend yield
: Company Z stock currently sells for $40. The required return on the stock is 8%. Company Z maintains a constant 5% growth rate in dividends. Calculate the most recent dividend. What is the dividend yield?
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Other comprehensive income includes unrealized gains
: Accumulated other comprehensive income includes unrealized gains and losses from marketable securities and investments in securities as well as unrealized gains and losses from translating the financial statements of foreign subsidiaries into U.S. do..
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