Popular in Course
verified elite notetaker
Popular in Department
This 0 page Study Guide was uploaded by tophomework Notetaker on Sunday November 15, 2015. The Study Guide belongs to a course at a university taught by a professor in Fall. Since its upload, it has received 21 views.
Reviews for fin_week_5_assignment
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 11/15/15
Question 1 Your finance text book sold 53250 copies in its first year The publishing company expects the sales to grow at a rate of 20 percent for the next three years and by 10 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 I Number of copies sold in the fourth year Link to Text Question 2 Find the present value of 3500 under each of the following rates and periods I f 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 89 percent compounded monthly for five years 33 Present value I b 66 percent compounded quarterly for eight years 33 Present value c 43 percent compounded daily for four years Present value l l d 57 percent compounded continuously for three years Present value Question 3 Trigen Corp management will invest cash ows of 331000 616450 212775 818400 1239644 and 1617848 in research and development over the next six years If the appropriate interest rate is 675 percent what is the future value of these investment cash ows six years from today Round answer to 2 decimal places e g 1525 Future value I Link to Text Question 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 500000 today plus 500000 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 ow stream that the company is offering you Round answer to the nearest whole dollar e g 5275 Present value Link to Text Question 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 Probabilit 3 Boom 0 1 Good 04 Level 03 Slump 02 Return 2500 1500 1000 500 What is the expected return on Barbara s investment Round answer to 3 decimal places eg 0076 Expected return I Link to Text What is the standard deviation of the return on Barbara39s investment Round intermediate calculations and answer to 5 decimal places eg 007680 Standard deviation Link to Text I By accessing this Question Assistance you will learn while you earn points based on the Point Potential Policy set by your instructor Question 6 Trevor Price bought 10year bonds issued by Harvest Foods five years ago for 93605 The bonds make semiannual coupon payments at a rate of 84 percent If the current price of the bonds is 104877 What is the yield that Trevor would earn by selling the bonds today Round intermediate calculations to 4 decimal places e g 12514 and final answer to 2 decimal places eg 1525 Effective annual yield I Question 7 The First Bank of Ellicott City has issued perpetual preferred stock With a 100 par value The bank pays a quarterly dividend of 165 on this stock What is the current price of this preferred stock given a required rate of return of 116 percent Round answer to 2 decimal places eg 1525 Current price Link to Text
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'