You just settled an insurance claim that calls for increasin…

You just settled an insurance claim that calls for increasing payments over a 10-year period. The first payment will be paid one year from now in the amount of $5,000. The following payments will increase by 3.5 percent annually. What is the value of this settlement to you today if you can earn 6.5 percent on your investments?

You want a seat on the board of directors of Four Keys, Inco…

You want a seat on the board of directors of Four Keys, Incorporated. The company has 305,000 shares of stock outstanding and the stock sells for $52 per share. There are currently 4 seats up for election. If the company uses cumulative voting, how many shares do you need to guarantee that you will be elected to the board?

Red Sun Rising Corporation has just signed a lease for its n…

Red Sun Rising Corporation has just signed a lease for its new manufacturing facility. The lease agreement calls for annual payments of $1,450,000 for 30 years with the first payment due today. If the interest rate is 3.39 percent, what is the value of this liability today?