1. If you start making $225 monthly contributions today and continue them for four years, what is their future value if the compounding rate is 12.00 percent APR?
What is the present value of this annuity?
2. A 5-year corporate bond has a coupon of 3.0%, paid semi-annually, and is trading at a yield of 3.5%. the price of the bond is?
3. Which of the following would reduce the additional funds required if all the other things are held constant?
a. An increase in the dividend payout ratio
b. A decrease in the profit margin
c. An increase in the capital intensity ratio
d. An increase in the expected sales growth rate.
e. A decrease in the firm's tax rate.