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Colleen and Genevieve are twins who are celebrating their 40th birthdays today (t = 0).  Neither has saved anything for retirement.  Colleen realizes that she needs to begin saving for retirement, and her plan is to deposit into an investment account $16,000 annually at the end of each of the next 25 years.  The first deposit will occur one year from now when she turns 41 (t = 1), and the final deposit will be made on her 65th birthday (t = 25).  On the other hand, Genevieve is a procrastinator and doesn’t plan on beginning saving for retirement until she turns 50.  She will also make her last deposit on her 65th birthday, so she will have made only 15 annual deposits.  Both Colleen and Genevieve plan to retire when they make their final deposits on their 65th birthdays.  Both have similar investing styles so they both expect to earn an annual 7% rate of return on their investments.  How much does Genevieve need to save annually to have the same amount at retirement that Colleen has?

Social and economic changes will continue to create a need for more child care services.

Drougas Foods is considering the introduction of a new candy bar line.  The project would require a $4.0 million after-tax investment outlay today (t = 0).  The after-tax cash flows would depend on whether the new candy bar is well received by consumers.  There is a 60% chance that demand will be good, in which case the project will produce after-tax cash flows of $2.50 million at the end of each of the next 3 years.  There is a 40% chance that demand will be poor, in which case the after-tax cash flows will be $0.05 million for 3 years.  The project has a WACC of 12%.  The firm will know if the project is successful after receiving the cash flows the first year, and after receiving the first year’s cash flows it will have the option to abandon the project.  If the firm decides to abandon the project the company will not receive any operating cash flows after t = 1, but it will be able to sell the assets related to the project for $1.90 million after taxes at t = 1.  Assuming the company has an option to abandon the project, what is the expected NPV (in millions of dollars) of the project today? 

A compassionate teacher is ________.  

A (n) ______________ provides in-home care for children.

Match the structures to the image below.

Match the terms to the correct information. 

I have read the course syllabus and I understand the requirements of this course as stated.

Assume that the company has no dividends, and that all its net income went towards retained earnings.  How much new common stock did the company issue over the past year?  

Potts Industries is a mature company experiencing a constant growth rate of 6%.  The firm has just paid a dividend of $1.50 (that is, D0 = $1.50).  Investors require a 9% rate of return on its stock.  What is the firm’s stock price today?  NOTE: Since the $1.50 dividend has already been paid, its value should not be reflected in the firm’s stock price.