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All else constant, a(n) ______ will increase the internal rate of growth.

You have a credit card with a balance of $13,600 and an APR of 18 percent compounded monthly. You have been making payments of $260 per month, but you have received a substantial raise and will increase your monthly payments to $335 per month. How many months quicker will you be able to pay off the account?

Assume the total cost of a college education will be $245,000 when your child enters college in 15 years. You presently have $108,000 to invest for this purpose. What annually compounded rate of interest must you earn to cover the cost of your child’s college education?

Book Match just paid an annual dividend of $1.50 per share. The company will increase its dividend by 7 percent next year and will then reduce its dividend growth rate by 2 percentage points per year until it reaches the industry average of 3 percent dividend growth, after which the company will keep a constant growth rate forever. What is the price of this stock today given a required return of 14 percent?

Kroencke Freight is saving money to build a new loading platform. Three years ago, they set aside $23,000 for this purpose. Today, that account is worth $31,406. What annually compounded rate of interest is the firm earning on this investment?

Stoneheart Group is expected to pay a dividend of $3.15 next year. The company’s dividend growth rate is expected to be 4 percent indefinitely and investors require a return of 11.6 percent on the company’s stock. What is the stock price?

Naples Corporation has an unfunded pension liability of $327 million that must be paid in 16 years. What is the present value of this liability at a discount rate of 6.24 percent, compounded annually?

Castaneda Accounting has sales of $332,700, cost of goods sold of $221,800, inventory $13,700, accounts receivable of $22,400, and accounts payable of $11,900. How many days of sales are in receivables?

Twelve years ago, your parents set aside $8,000 to help fund your college education. Today, that fund is valued at $23,902. What annually compounded rate of interest is being earned on this account?

Assume a firm with sales of $28,400 is currently operating at 98 percent of capacity. The firm currently has fixed assets of $16,900 and total assets of $24,600. Next year, sales are projected to increase to $35,000. What is the projected addition to fixed assets?