Given the information in the table, what is the price of the stock in YEAR 1? Today’s Dividend $3.75 Discount Rate 7.86% Growth rate in dividends 0 to 1 7.53% Growth rate in dividends 1 to 2 8.34% Growth rate in dividends 2 to 3 5.82% Growth rate in dividends 3 onward 4.89%

What is the present value of RM2,400 a year at a discount rate of 8% if the first payment is received 7years from now and you received a total of 25 annual payments?

Payments on a five​-year lease valued at $34,000 are to be made at the beginning of every three months. If interest is 11.2​% compounded quarterly​, what is the size of the quarterly ​payments?

The size of the quarterly payments is $___.

​(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as​ needed.)

The comparative balance sheets of Larkspur Inc. at the beginning and the end of the year 2020 are as follows.

Net income of $48,260 was reported, and dividends of $29,340 were paid in 2020. New equipment was purchased and none was sold.

Prepare a statement of cash flows for the year 2020. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

The current price of a stock is $50. In 1 year, the price will be either $65 or $35. The annual risk-free rate is 10%. Find the price of a call option on the stock that has an exercise price of $55 and that expires in 1 year. (Hint: Use daily compounding.)

The changes in the current asset and liability accounts for the year are as follows:

Depreciation expense

$48,500

Gain on disposal of equipment

26,900

Net income

577,400

The changes in the current asset and liability accounts for the year are as follows:

Increase (Decrease)

Accounts receivable

$8,190

Inventory

(4,280)

Prepaid insurance

(2,020)

Accounts payable

(7,000)

Income taxes payable

1,390

Dividends payable

2,480

Required:

A.

Prepare the Cash Flows from Operating Activities section of the statement of cash flows <javascript:void(0)>, using the indirect method. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required.

B.

Briefly explain why net cash flows from operating activities is different from net income.

In the year 2000, the Chinese economy’s growth was not as fast as the government expected. The Chinese government prolonged the Labour Day vacation (in May) to 7 days so that people could spend more.

a. Explain this decision, using the model of aggregate demand and aggregate supply.

b. Why did the Chinese government not wait until the economy adjusted back to its expected long-run position of high economic growth?

1) Computer equipment was acquired at the beginning of the year at a cost of $53,900. It had an estimated residual value of $4,300 and an estimated useful life of 5 years.

a. Determine the depreciable cost.

b. Determine the straight-line rate.

c. Determine the annual straight-line depreciation.

2) A machine costing $45,000 with a 5-year life and $2,700 residual value was purchased January 2. Compute depreciation for each of the five years, using the double-declining-balance method.

You will be paying $11,000 a year in tuition expenses at the end of the next two years. Bonds currently yield 10%.

a. What is the present value and duration of your obligation? (Do not round intermediate calculations. Round "Present value" to 2 decimal places and "Duration" to 4 decimal places.)

b. What is the duration of a zero-coupon bond that would immunize your obligation and its future redemption value? (Do not round intermediate calculations. Round "Duration" to 4 decimal places and "Future redemption value" to 2 decimal places.)

c. Suppose you buy a zero-coupon bond with value and duration equal to your obligation. Now suppose that rates immediately increase to 11%. What happens to your net position, that is, to the difference between the value of the bond and that of your tuition obligation? (Enter your answer as a positive value. Do not round intermediate calculations. Round your answer to 2 decimal places.)

d. What if rates fall to 9%? (Enter your answer as a positive value. Do not round intermediate calculations. Round your answer to 2 decimal places.)

If a merchant deposits $ 1500 annually at the end of each fiscal year into a retirement account that pays interest at the rate of 8% per year compounded annually, how much money will he have in his account at the end of 25 years?