Business Finance Help for College and University Students

finding a monthly interest rate

You took out a car loan. You must pay $500 a month for 48 months. You calculate that the FV of the loan is $33,034.18. What is your monthly interest rate? a)1.0% b)2.5% c)3.1% d)1.3% e)1.90% f)2.9% g)2.1% h)0.94% i)0.83% j)2.13%

maximum value of a series of cash flows

You are considering buying a contract that offers the following cash flows Year 0=$100 1=$100 2=$200 3=$300 4=$400 5=$400 6=$400 If your required rate of return is 12% for cash flows received between year 0 through year 2 and 6% thereafter, what is the maximum you should pay for the contract? possible answers a)1341.20 b) ...continues

annuity

To save money, you want to begin contributing money to a risky brokerage account. Your plan is to make 4 contributions to the brokerage account. Each contribution will be $5,000 and each will be made at the beginning of each quarter beginning now and until the end of the year (the first immediately and then every 3 months). A ...continues

finding current price of a stock

CPX Inc. just paid a dividend of $1.00 per share. Analysts expect the company's dividend to grow 10% this year and 8% the next year. After two years the dividend is expected to grow at a constant rate of 7%. The required rate of return is 12%. What is the current price of the stock? a)20.00 b)21.56 c)23.59 d)22.20 e)22.01 ...continues

valuation of a stock

Napa Auto Parts' last dividend (t=0) was $1.00 and the company expects to experience no growth for the next 3 years (from t=0 - t=3). However, Napa will grow at an annual rate of 10% between the third and fourth year and between the fourth and fifth years. Starting from the end of the fifth year, Napa will grow at a 5% rate, t ...continues

finding expected growth rate of a stock

IBM just paid (t=0) a $2.00 dividend. The required rate of return for IBM stock is 22%. If a price of a share of IBM is expected to be $82.1516 at the end of year 2 (t=2), what is IBM's expected growth rate? possible answers: a)16% b)11% c)11.5% d)18% e)10.5% f)14.5% g)16.5% h)12% i)22.5% j)13.5%

annuity

Your client just turned 75 years old and plans on retiring in exactly 10 years (on her 85th birthday). She is saving money today for her retirement and is establishing a retirement account with your office. She would like to withdraw money from her retirement account on her birthday each year until her death. She would ideally l ...continues

Stock valuation: What is the current price (t=0) of Napa shares?

Napa Auto Parts' last dividend (t=0) was $1.00 and the company expects to experience no growth for the next 3 years (from t=0 - t=3). However, Napa will grow at an annual rate of 10% between the third and fourth year and between the fourth and fifth years. Starting from the end of the fifth year, Napa will grow at a 5% rate, the ...continues

Accounting Environment: the accounting cycle and the 4 types of financial statements

Objectives: define basic accounting concepts, terminology and transactions. Illustrate the accounting cycle. Describe the four types of financial statements. Explain the importance of ethics in accounting and financial decision making.

2 problems I have answers. need help putting cell formulas on excel spread sheet.

2 problems I have answers. need help putting cell formulas on excel spread sheet. see attached word document