Compute the total present value of given amount

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Questions: 1. Compute the total present value of $300,000 two years from now and $400,000 four years from now given a 10 percent discount rate.

2. Compute the present value of a 12-year ordinary annuity with annual payments of $6000 given a discount rate of 7 percent.

3. You are considering preferred stock that pays a quarterly dividend of $1.50. If your desired return is 3% per quarter, how much would you be willing to pay?

Reference no: EM131795506

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