Accounting Question

Doc attached with questions

Unit 6 Assignment
Chapter 9: 2, 5, 14, 20
Chapter 10: 3, 23, 28
9-2 Present value (LO9-3) What is the present value of
a.
$7,900 in 10 years at 11 percent?
b.
$16,600 in 5 years at 9 percent?
c.
$26,000 in 14 years at 6 percent?
9-5. If you invest $9,000 today, how much will you have
a.
In 2 years at 9 percent?
b.
In 7 years at 12 percent?
c.
In 25 years at 14 percent?
d.
In 25 years at 14 percent (compounded semiannually)?
9-14. Phil Goode will receive $175,000 in 50 years. His friends are very jealous of him. If the funds are
discounted back at a rate of 14 percent, what is the present value of his future “pot of gold”?
9-20. Future value (LO9-2) Kai Chang made a $2,000 deposit in her savings account on her 21st birthday,
and she has made another $2,000 deposit on every birthday since then. Her account earns 7 percent
compounded annually. How much will she have in her account after she makes the deposit on her 32nd
birthday?
10-3 Exodus Limousine Company has $1,000 par value bonds outstanding at 10 percent interest. The bonds
will mature in 50 years. Compute the current price of the bonds if the percent yield to maturity is
a. 5 percent.
b. 15 percent.
10-23. Preferred stock value (LO10-4) The preferred stock of Denver Savings and Loan pays an annual
dividend of $8.10. It has a required rate of return of 9 percent. Compute the price of the preferred stock.
10-28. BioScience Inc. will pay a common stock dividend of $3.20 at the end of the year (D1). The required
return on common stock (Ke) is 14 percent. The firm has a constant growth rate (g) of 9 percent. Compute
the current price of the stock (P0).