Friday

October 24, 2014

October 24, 2014

Posted by **Helpless** on Wednesday, August 21, 2013 at 3:26pm.

Problem 6.19

Trigen Corp. management will invest cash flows of $772,380, $776,008, $982,094, $818,400, $1,239,644, and $1,617,848 in research and development over the next six years. If the appropriate interest rate is 9.56 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.)

Future value $

Problem 6.27

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 $502,000 today, plus $502,000 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.)

Present value $

Problem 7.16

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

Probability Return

________________________________________

Boom 0.7 25.00%

Good 0.1 15.00%

Level 0.1 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.)

Expected return:

Problem 8.24

Trevor Price bought 10-year bonds issued by Harvest Foods five years ago for $976.42. The bonds make semiannual coupon payments at a rate of 8.4 percent. If the current price of the bonds is $1,014.85, 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%.)

Effective annual yield ___%

Problem 9.15

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 10.0 percent? (Round answer to 2 decimal places, e.g. 15.25.)

Current price

**Answer this Question**

**Related Questions**

Time Zones - Check my work. Calculate the correct time in brackets: 1. 1:00am at...

Math - i have a couple questions what are the least common multiples of these ...

To Math Helpers please:Math 2 questions - I'll retype it, Ive been waiting ...

Algebra - Can someone please help me with math problem and explain to me step by...

Finance - I have two finance questions that I need help on - willing to pay. ...

Algebra - How would you solve this problem: Slove y=1/4-1 if the domain is(-4,-2...

math - If plane A took off in Chicago at 4:00pm and went 326mph the whole time, ...

College math - Can someone please assist me The problem reads "use the rule of ...

PLEASE HELP ME MATH - someone please help i hav posted my questions like 5 times...

Math - Help please on how to solve the following problem: If E,N,O,T, and W each...