You will deposit $8,000 today. It will grow for 7 years at 10% interest compounded semiannually. You will then withdraw the funds annually over the next 5 years. The annual interest rate is 8%. Your annual withdrawal will be: Use Appendix A and Appendix D. (Round "PV Factor" and "FV Factor" to 3 decimal places.)
$2,700
$3,967
$5,222
$7,214
A sixteen-year bond, with par value equals $1,000, pays 12% annually. If similar bonds are currently yielding 10% annually, what is the market value of the bond? Use semi-annual analysis. Use Appendix B and Appendix D. (Round "PV Factors" to 3 decimal places, intermediate calculations and final answer to 2 decimal places.)
$1,458.18
$1,308.18
$1,108.18
$1,158.18
An issue of common stock's most recent dividend is $3.45. Its growth rate is 4.0%. What is its price if the market's rate of return is 9.2%? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
$71.35
$69.00
$76.35
$33.17
An issue of common stock is selling for $56.60. The year end dividend is expected to be $3.15 assuming a constant growth rate of 5%. What is the required rate of return? (Round your answer to 1 decimal place.)
11.1
10.1
12.6
10.6