Questions from Financial Markets


Q: Calculate the future value of the following annuity streams: a

Calculate the future value of the following annuity streams: a. $5,000 received each year for five years on the last day of each year if your investments pay 6 percent compounded annually. b. $5,000 r...

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Q: Paychex Inc. (PAYX) recently paid a $0.

Paychex Inc. (PAYX) recently paid a $0.84 dividend. The dividend is expected to grow at a 15 percent rate. At a current stock price of $40.11, what return are shareholders expecting?

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Q: Consider a firm with a 9.5 percent growth rate of

Consider a firm with a 9.5 percent growth rate of dividends expected in the future. The current year’s dividend was $1.32. What is the fair present value of the stock if the required rate of return is...

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Q: If you deposit $500 in a bank account that earns 6

If you deposit $500 in a bank account that earns 6 percent per year, how much total interest will you have earned after the third year?

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Q: Two bonds are available for purchase in the financial markets. The

Two bonds are available for purchase in the financial markets. The first bond is a two-year, $1,000 bond that pays an annual coupon of 10 percent. The second bond is a two year, $1,000, zero-coupon bo...

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Q: How much money would you have to deposit today in order to

How much money would you have to deposit today in order to have $2,000 in four years if the discount rate is 8 percent per year?

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Q: If an ounce of gold, valued at $1,200

If an ounce of gold, valued at $1,200, increases at a rate of 7.5 percent per year, how long will it take to be valued at $2,000?

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Q: You can save $1,000 per year for the next

You can save $1,000 per year for the next six years in an account earning 10 percent per year. How much will you have at the end of the sixth year if you make the first deposit today?

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Q: What are the monthly payments (principal and interest) on a

What are the monthly payments (principal and interest) on a 15-year home mortgage for an $180,000 loan when interest rates are fixed at 8 percent?

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Q: Ecolap Inc. (ECL) recently paid a $0.

Ecolap Inc. (ECL) recently paid a $0.46 dividend. The dividend is expected to grow at a 14.5 percent rate. At a current stock price of $44.12, what return are shareholders expecting?

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