Find the amount of each of 5 payments made at the end of each year into a 6% rate sinking fund which produces $21,000 at the end of 5 years.
A. $2,053.18
B. $3,514.46
C. $3,725.32
D. $4,200.00
In: Finance
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In: Finance
Suppose a firm is expected to increase dividends by 5% in one year and by 10% in year two. After that, dividends will increase at a rate of 4% per year indefinitely. If the last dividend was $4 and the required return is 10%, what is the price of the stock?
In: Finance
You plan to invest $1,400 at the end of year 1, $2,300 at the end of year 2, and $3,700 at the end of year 3. If you can earn 4.00 %, compounded annually, how much you will have in your account by the end of the 3rd year. (Round your answer to the nearest hundredth; two decimal places)
In: Finance
In a certain year, if your return on investment is 4.40% and the inflation rate during that same year is 1.20%, what is your real rate of return?
In: Finance
You purchased a stock at a price of $25. A year later the stock is worth $34, and during the year it paid $3.0 in dividends. What was the rate of return you earned on this investment?
In: Finance
2. An investment of $425 is made at a nominal rate of 4% per year, with interest compounded monthly. How long will it take that investment to double?
a) Write the equation that you need to solve in order to answer this problem.
b) Show how to solve your equation TWO ways: graphically and symbolically. To solve graphically, clearly sketch the window you saw, give the dimensions of the window, label your curves, and give the coordinates of any point(s) of importance.
When solving symbolically, I want you to first find the EXACT answer, and then give an appropriate decimal approximation.
You may use natural logs and/or common logs, but logs of no other bases. Be sure the answer to the question asked is stated in a short sentence at the end of your work.
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What is the present value (PV) of an investment that pays $90,000 every year for four years if the interest rate is 9% APR, compounded quarterly?
In: Finance
An investor in Treasury securities expects in ation to be 2.5 %
in Year 1, 3.2 % in Year
2, and 3.6 % each year thereafter. Assume that the real risk free
rate is 2.75 % and that this rate
will remain constant. Three-year treasury securities yield 6.25 %,
while 5-year Treasury securities
yield 6.8 %. What is the dierence in the maturity risk premiums
(MRPs) on the two securities;
that is MRP5 ?MRP2
In: Finance
Determine the discounted value of an annuity of $380 at the end of each half-year for 3 years at a) j2 = 8%, b) j2 = 6%, c) j2 = 10.38%.
In: Finance