Shares outstanding linked to the volatility of firm stock

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1. Is the number of shares outstanding linked to the volatility of the firm's stock?

2. An insurance company offers you an end of year annuity of $35,000 per year for the next 5 years. They claim your return on the annuity is 8 percent. What should you be willing to pay today for this annuity?

3. An annuity makes 5 equal annual payments of $2,000. The first payment begins in exactly 12 years. If the relevant discount (interest) rate is 12%, what is the present value (today) of the annuity?

Reference no: EM131839945

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