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FIn571 week 5 assignment

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Question;Week 5 Assignment;Problem 5.17;Your finance text book sold 47,500 copies in its first year. The;publishing company expects the sales to grow at a rate of 19.0 percent for the;next three years, and by 12.0 percent in the fourth year. Calculate the total;number of copies that the publisher expects to sell in year 3 and 4.(If you solve this problem;with algebra round intermediate calculations to 6 decimal places, in all cases;round your final answers to the nearest whole number.);Number of copies sold after 3 years;Number of copies sold in the fourth year;Problem 5.21;Find the present value of $4,400 under each of the following rates and;periods.;(If you solve this problem;with algebra round intermediate calculations to 6 decimal places, in all cases;round your final answer to the nearest penny.);a. 8.9 percent compounded;monthly for five years.;Present value;$;b. 6.6 percent compounded quarterly for eight years.;Present value;$;c. 4.3 percent compounded daily for four years.;Present value;$;d. 5.7 percent compounded continuously for three years.;Present value;$;Warning;Don't;show me this message again for the assignment;Ok;Cancel;Problem 6.19;Trigen Corp. management will invest cash flows of $601,215;$1,471,556, $275,725, $818,400, $1,239,644, and $1,617,848 in research and;development over the next six years. If the appropriate interest rate is 5.57;percent, what is the future value of these investment cash flows six years from;today?(Round;answer to 2 decimal places, e.g. 15.25.);Future value;$;Problem 6.27;You wrote a piece of software that does a better job of allowing;computers to network than any other program designed for this purpose. A large;networking company wants to incorporate your software into their systems and is;offering to pay you $466,000 today, plus $466,000 at the end of each of the;following six years for permission to do this. If the appropriate interest rate;is 6 percent, what is the present value of the cash flow stream that the;company is offering you?(Round answer to the nearest whole dollar, e.g. 5,275.);Present value;$;Warning;Don't;show me this message again for the assignment;Ok;Cancel;Problem 7.16;Barbara is considering investing in a stock and is aware that;the return on that investment is particularly sensitive to how the;economy is performing. Her analysis suggests that four states of the;economy can affect the return on the investment. Using the table of;returns and probabilities below, find;Probability;Return;Boom;0.6;25.00%;Good;0.2;15.00%;Level;0.1;10.00%;Slump;0.1;-5.00%;Warning;Don't;show me this message again for the assignment;Ok;Cancel;What is the expected return on Barbara?s investment?(Round answer to 3;decimal places, e.g. 0.076.);Expected return;Warning;Don't;show me this message again for the assignment;Ok;Cancel;Problem 8.24;Trevor Price bought 10-year bonds issued by Harvest Foods five years;ago for $960.38. The bonds make semiannual coupon payments at a rate of 8.4;percent. If the current price of the bonds is $1,059.28, what is the yield that;Trevor would earn by selling the bonds today?(Round intermediate;calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal;places, e.g. 15.25%.);Effective annual yield;%;Problem 9.15;The First Bank of Ellicott City has issued perpetual preferred stock;with a $100 par value. The bank pays a quarterly dividend of $1.65 on this;stock. What is the current price of this preferred stock given a required rate;of return of 11.5 percent?(Round answer to 2 decimal places, e.g. 15.25.);Current price;$

 

Paper#49261 | Written in 18-Jul-2015

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