It is now January 1. You plan to make a total of 5 deposits of $400 each, one every 6 months, with the first payment being made today. The bank pays a nominal interest rate of 12% but uses semiannual compounding. You plan to leave the money in the bank for 10 years. Do not round intermediate calculations. Round your answers to the nearest cent.

1. How much will be in your account after 10 years?

   $  

2. You must make a payment of $1,432.04 in 10 years. To get the money for this payment, you will make five equal deposits, beginning today and for the following 4 quarters, in a bank that pays a nominal interest rate of 12% with quarterly compounding. How large must each of the five payments be?

   $  

You are 25 years old and decide to start saving for your retirement. You plan to save $5,000

at the end of each year​ (so the first deposit will be one year from​ now), and will make the last deposit when you retire at age 65.

Suppose you earn 8% per year on your retirement savings.

a. How much will you have saved for​ retirement? The amount that you will have accumulated for retirement is _____

b. How much will you have saved if you wait until age 35 to start saving​ (again, with your first deposit at the end of the​ year)? ______

​(Round to the nearest​ dollar.)

Blunderbluss Manufacturing's balance sheets report $305 million in total debt, $64 million in short-term investments, and $65 million in preferred stock. Blunderbluss has 5 million shares of common stock outstanding. A financial analyst estimated that Blunderbuss's value of operations is $850 million. What is the analyst's estimate of the intrinsic stock price per share? Round your answer to the nearest cent.

Show all work. Label and clearly explain your answer. This is very important. 1) You must explain how you arrived at your answer in order to get full credit. 2) If you do show your work, and your answer is wrong, you can still earn a substantial amount of credit depending on how serious the error is. 3) If your answer is wrong, and you don't show your work, you will get a zero. a. Convert 3% simple monthly rate into simple annual rate. b. Convert 6% simple annual rate into annual rate, compounded monthly. c. Convert 9% annual rate compounded monthly into annual rate, compounded daily. d. Convert 12% annual rate, compounded weekly into simple annual rate. e. Convert 15% simple annual rate into annual rate, compounded semi-annually.

Name another company in the same industry as General Electric (GE) that provides benefits to multiple stakeholders, and briefly explain who those stakeholders are and how they benefit.

If you bought a stock for $53 dollars and could sell it 16 years later for three times what you originally paid. What was your return on owning this stock?

Include functional formulas utilized in Microsoft® Excel® for your answers presented (in other words - do not simply type answers in the spaces required).

Problem 16-14
Cash Budgeting

Dorothy Koehl recently leased space in the Southside Mall and opened a new business, Koehl's Doll Shop. Business has been good, but Koehl frequently run out of cash. This has necessitated late payment on certain orders, which is beginning to cause a problem with suppliers. Koehl plans to borrow from the bank to have cash ready as needed, but first she needs a forecast of how much she should borrow. Accordingly, she has asked you to prepare a cash budget for the critical period around Christmas, when needs will be especially high.

Sales are made on a cash basis only. Koehl's purchases must be paid for during the following month. Koehl pays herself a salary of $4,000 per month, and the rent is $2,800 per month. In addition, she must make a tax payment of $13,000 in December. The current cash on hand (on December 1) is $450, but Koehl has agreed to maintain an average bank balance of $4,500 - this is her target cash balance. (Disregard the amount in the cash register, which is insignificant because Koehl keeps only a small amount on hand in order to lessen the chances of robbery.)

The estimated sales and purchases for December, January, and February are shown below. Purchases during November amounted to $100,000.

1. Prepare a cash budget for December, January, and February.

   I. Collections and Purchases:
   	December	January	February
   Sales	$	$	$
   Purchases	$	$	$
   Payments for purchases	$	$	$
   Salaries	$	$	$
   Rent	$	$	$
   Taxes	$	---	---
   Total payments	$	$	$
   Cash at start of forecast	$	---	---
   Net cash flow	$	$	$
   Cumulative NCF	$	$	$
   Target cash balance	$	$	$
   Surplus cash or loans needed	$	$	$

   
   
2. Suppose Koehl starts selling on a credit basis on December 1, giving customers 30 days to pay. All customers accept these terms, and all other facts in the problem are unchanged. What would the company's loan requirements be at the end of December in this case? (Hint: The calculations required to answer this part are minimal.)

Joshua Kelly estimates that taking some classes would result in earning $10,000 more a year for the next 50 years. Based on an annual interest rate of 8 percent, calculate the future value of these classes. Use Exhibit 1-B. (Round time value factor to 3 decimal places and final answer to 2 decimal places.)

future value =

What is the future value of a 5%, 10 year annuity due that pays $15,000 per year? What is the present value of a 5%, 10 year annuity due that pays $15,000 per year?

What are derivatives? How can derivatives be used to reduce risk? Can derivatives be used to increase
risk? Explain

what is 10 percent increase on

(a) $25.706B

(b) $25.533B

(c) $24.536B

(d) $24.658B

If you borrow $7,000 with an interest rate of 3 percent, to be repaid in five equal yearly payments at the end of the next five years, what would be the amount of each payment? Use Exhibit 1-D. (Round time value factor to 3 decimal places and final answer to 2 decimal places.)

Amount of each paymet