In a Word certificate complete the afterward problems.
You may break the problems algebraically, or you may use a banking calculator.
If you acquire to break the problems algebraically, be abiding to appearance your computations.
If you use a banking calculator, appearance your ascribe values.
In accession to your band-aid to anniversary computational problem, you charge appearance the acknowledging assignment arch to your band-aid to acquire acclaim for your answer.
Unless contrarily directed, acquire anniversary compounding periods in the computational problems.
1.
If you deposited $250 in your accumulation anniversary today, and the coffer pays 4 percent absorption per year, how abundant would you acquire in your accumulation anniversary afterwards 9 years?
Recalculate the anniversary antithesis application a 6 percent absorption amount and a 7 percent absorption rate.
A $450 drop earns 6 percent absorption in the aboriginal year, 3 percent absorption in the additional year, and 7 percent absorption in the third year. What is the approaching amount at the end of the third year?
What is the anniversary amount of acknowledgment for an $8,000 advance if in bristles years it grows to $12,500?
Assuming the advance occurred in six years and again eight years, recalculate the amount of acknowledgment for these two scenarios.
2.
If absorption ante are 8 percent, what is the approaching amount of a $400 accomplishment acquittal over six years? Unless contrarily directed, acquire anniversary compounding periods.
Recalculate the approaching amount at 6 percent absorption and 9 percent interest.
If absorption ante are 5 percent, what is the present amount of a $900 accomplishment acquittal over three years? Unless contrarily directed, acquire anniversary compounding periods.
Recalculate the present amount at 10 percent absorption and 13 percent interest.
What is the present amount of a alternation of $1150 payments fabricated every year for 14 years back the abatement amount is 9 percent?
Recalculate the present amount application abatement amount of 11 percent and 12 percent.
3
Imagine that on June 4, the Dow Jones Industrial Boilerplate bankrupt at 13,598.14, which was up 148.86 credibility from the antecedent day's abutting of 13,449.28. Account the return, in percent to four decimal places, of the banal bazaar for June 4.
The amount per banal at a allowance close is $0.10. Account how abundant money you would charge to buy 150 shares of HiTech, Inc., which trades at $18.22.
HiTech, Inc.'s advance for the approaching is forecasted to be a connected 10 percent. HiTech's abutting allotment is accepted to be $1.18. Account the amount of HiTech banal back the adapted acknowledgment is 12 percent.
Preferred banal from HiTech, Inc. pays $1.20 in anniversary dividend. Account the amount of the banal if the adapted acknowledgment on the adopted banal is 4.5 percent.
HiTech, Inc. has balance per allotment of $1.82 and a P/E arrangement of 31.54. Account the banal price.
4
Assuming semi-annual compounding, what is the amount of a aught advertisement band that matures in 3 years if the bazaar absorption amount is 5.5 percent? Acquire par amount is $1000.
Using semi-annual compounding, what is the amount of a 5 percent advertisement band with 10 years larboard to ability and a bazaar absorption amount of 7.2 percent? Acquire that absorption payments are paid semi-annually and that par amount is $1000.
Using semi-annual compounding, what is the crop to ability on a 4.65 percent advertisement band with 18 years larboard to ability that is offered for auction at $1,025.95? Acquire par amount is $1000.
5.
Two years ago, Conglomco banal concluded at $73.02 per share. Aftermost year, the banal paid a $0.34 per allotment dividend. Conglomco banal concluded aftermost year at $77.24. If you endemic 200 shares of Conglomco stock, what were your dollar acknowledgment and percent acknowledgment aftermost year?
Calculate the accessory of aberration for the afterward three stocks. Again rank them by their akin of absolute risk, from accomplished to lowest:
Conglomco has an boilerplate acknowledgment of 11 percent and accepted aberration of 24 percent.
Supercorp has an boilerplate acknowledgment of 16 percent and accepted aberration of 37 percent.
Megaorg has an boilerplate acknowledgment of 10 percent and accepted aberration of 29 percent.
Year-to-date, Conglomco has becoming a −1.64 percent return, Supercorp has becoming a 5.69 percent return, and Megaorg has becoming a 0.23 percent return. If your portfolio is fabricated up of 40 percent Conglomco stock, 30 percent Supercorp stock, and 30 percent Megaorg stock, what is your portfolio return?
6
Based on the anticipation and allotment of acknowledgment for the three bread-and-butter states in the table below, compute the accepted return.
Economic StateProbabilityPercentage of ReturnFast Growth0.1060Slow Growth0.5030Recession0.40-23
If the certain amount is 7 percent and the accident exceptional is 4 percent, what is the adapted return?
Suppose that the boilerplate anniversary acknowledgment on the Accepted and Poor's 500 Index from 1969 to 2005 was 14.8 percent. The boilerplate anniversary T-bill crop during the aforementioned aeon was 5.6 percent. What was the bazaar accident exceptional during these 10 years?
Conglomco has a beta of 0.32. If the bazaar acknowledgment is accepted to be 12 percent and the certain amount is 5 percent, what is Conglomco's adapted return? Use the basic asset appraisement archetypal (CAPM) to account Conglomco's adapted return.
Calculate the beta of a portfolio that includes the afterward stocks:
Conglomco stock, which has a beta of 3.9 and comprises 35 percent of the portfolio.
Supercorp stock, which has a beta of 1.7 and comprises 25 percent of the portfolio.
Megaorg stock, which has a beta of 0.3 and comprises 40 percent of the portfolio.
7
Based on the banknote flows apparent in the blueprint below, compute the NPV for Activity Huron. Suppose that the adapted amount of basic is 12 percent. Advise the alignment about whether it should acquire or adios the project.
Project Huron
Time01234Cash Flow$12,000$2,360$4,390$1,520$3,300
Based on the banknote flows apparent in the blueprint below, compute the IRR and MIRR for Activity Erie. Suppose that the adapted amount of basic is 12 percent. Advise the alignment about whether it should acquire or adios the project.
Project Erie
Time012345Cash Flow$12,000$2,360$4,390$1,520$980$1,250