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Finn intends to save $2,000 per year, and expects to earn an annual rate of 6.9 percent. How much will he have in his account at the end of 37 years?

A prominent alumnus of your university has just donated $2,400,000 to fund a scholarship that will distribute $92,000 per year forever beginning in one year. For this to be true, what rate of return is expected on the donation?

Shares of common stock of the Samson Company offer an expected total return of 12.20 percent. The dividend is increasing at a constant 7.00 percent per year. The dividend yield must be:

Two annuities have equal present values and an applicable discount rate of 7.25 percent. One annuity pays $2,500 on the first day of each year for 15 years. How much does the second annuity pay each year for 15 years if it pays at the end of each year?

Grace is retiring today and has $300,000 in her retirement savings. She expects to earn 8.5 percent per year compounded monthly. How much can she withdraw from her retirement savings each month if she plans to spend her last penny 17 years from now?

Your grandparents would like to establish a trust fund that will pay you and your heirs $140,000 per year forever with the first payment 13 years from today. If the trust fund earns an annual return of 2.7 percent, how much must your grandparents deposit today?

A bond that pays interest semiannually has a price of $981.73 and a semiannual coupon payment of $27.75. If the par value is $1,000, what is the current yield?

Teddy’s Pillows had beginning net fixed assets of $458 and ending net fixed assets of $524. Assets valued at $306 were sold during the year. Depreciation was $16. What is the amount of net capital spending?

Buxbaum Corporation is preparing a bond offering with a coupon rate of 6 percent, paid semiannually, and a face value of $1,000. The bonds will mature in 10 years and will be sold at par. Given this, which one of the following statements is correct?

You find the following financial information about a company: net working capital = $816; fixed assets = $5,577; total assets = $8,286; and long-term debt = $4,359. What are the company’s total liabilities?