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finance text book




Question;1. Your finance text book sold 47,500 copies in its first;year. The publishing company expects the sales to grow at a rate of 15.0;percent for the next three years, and by 8.0 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.);2.) Find the;present value of $4,900 under each of the following rates and periods;a. 8.9 percent compounded monthly for five years.;b. 6.6 percent compounded quarterly for eight years.;c. 4.3 percent compounded daily for four years.;d. 5.7 percent compounded continuously for three years.;3.)Trigen Corp. management will invest cash flows of;$590,790, $345,693, $1,384,465, $818,400, $1,239,644, and $1,617,848 in;research and development over the next six years. If the appropriate interest;rate is 6.8 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.);4.)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 $523,000 today, plus $523,000 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.);5)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;Boom 0.3 25.00%;Good 0.2 15.00%;Level 0.4 10.00%;Slump 0.1 -5.00%;What is the expected return on Barbara?s investment? (Round;answer to 3 decimal places, e.g. 0.076.);6)Trevor Price bought 10-year bonds issued by Harvest Foods;five years ago for $976.24. The bonds make semiannual coupon payments at a rate;of 8.4 percent. If the current price of the bonds is $1,099.84, 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%.);7)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.)


Paper#49594 | Written in 18-Jul-2015

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