Week 5 Assignment:

Problem 5.17

.gif”>

Your finance text book sold 47,500 copies in its first year. The

publishing company expects the sales to grow at a rate of 19.0 percent for the

next three years, and by 12.0 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

.gif”>

Number of copies sold in the fourth year

.gif”>

Problem 5.21

.gif”>

Find the present value of $4,400 under each of the following rates and

periods.

(If 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. 8.9 percent compounded

monthly for five years.

Present value

$.gif”>

b. 6.6 percent compounded quarterly for eight years.

Present value

$.gif”>

c. 4.3 percent compounded daily for four years.

Present value

$.gif”>

d. 5.7 percent compounded continuously for three years.

Present value

$.gif”>

Warning

Don’t

show me this message again for the assignment

.wiley.com/edugen/shared/assignment/test/qview.uni?id=quest1966629entrance1&selected_question=quest1966629&operation=take-question##”>Ok

.wiley.com/edugen/shared/assignment/test/qview.uni?id=quest1966629entrance1&selected_question=quest1966629&operation=take-question##”>Cancel

Problem 6.19

.gif”>

Trigen Corp. management will invest cash flows of $601,215,

$1,471,556, $275,725, $818,400, $1,239,644, and $1,617,848 in research and

development over the next six years. If the appropriate interest rate is 5.57

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

$.gif”>

Problem 6.27

.gif”>

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 $466,000 today, plus $466,000 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

$.gif”>

Warning

Don’t

show me this message again for the assignment

.wiley.com/edugen/shared/assignment/test/qview.uni?id=quest2102448entrance1&selected_question=quest2102448&operation=take-question##”>Ok

.wiley.com/edugen/shared/assignment/test/qview.uni?id=quest2102448entrance1&selected_question=quest2102448&operation=take-question##”>Cancel

Problem 7.16

.gif”>

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

0.6

25.00%

Good

0.2

15.00%

Level

0.1

10.00%

Slump

0.1

-5.00%

Warning

Don’t

show me this message again for the assignment

.wiley.com/edugen/shared/assignment/test/qview.uni?id=quest2102621entrance1&selected_question=quest2102621&operation=take-question##”>Ok

.wiley.com/edugen/shared/assignment/test/qview.uni?id=quest2102621entrance1&selected_question=quest2102621&operation=take-question##”>Cancel

.gif”>

.gif”>

.gif”>

What is the expected return on Barbaraâs investment?(Round answer to 3

decimal places, e.g. 0.076.)

Expected return

.gif”>

Warning

Don’t

show me this message again for the assignment

.wiley.com/edugen/shared/assignment/test/qview.uni?id=quest2102621entrance1&selected_question=quest2102621&operation=take-question##”>Ok

.wiley.com/edugen/shared/assignment/test/qview.uni?id=quest2102621entrance1&selected_question=quest2102621&operation=take-question##”>Cancel

Problem 8.24

.gif”>

Trevor Price bought 10-year bonds issued by Harvest Foods five years

ago for $960.38. The bonds make semiannual coupon payments at a rate of 8.4

percent. If the current price of the bonds is $1,059.28, 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

.gif”>

%

Problem 9.15

.gif”>

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

Current price

$.gif”>

The price is based on these factors:

Academic level

Number of pages

Urgency

Basic features

- Free title page and bibliography
- Unlimited revisions
- Plagiarism-free guarantee
- Money-back guarantee
- 24/7 support

On-demand options

- Writer’s samples
- Part-by-part delivery
- Overnight delivery
- Copies of used sources
- Expert Proofreading

Paper format

- 275 words per page
- 12 pt Arial/Times New Roman
- Double line spacing
- Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Delivering a high-quality product at a reasonable price is not enough anymore.

That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more