Question
1 Calculate the following Time Value of Money problems a) If I am to receive $10,000 in 5 years and given a 5% rate of
1 Calculate the following Time Value of Money problems a) If I am to receive $10,000 in 5 years and given a 5% rate of return, what would be present value of this amount b) If I put $7,000 in the bank at 3% interest for 10 years , what is the future value of that amount c) If I deposit $1,000 a year into an account for 10 years at 2%, what is the future Value of that account d) what is the present value of $1,000 a year deposited for 10 years at 4% interest. 2 Why would an investor agree not take a dividend and agree to let a firm reinvest earnings back into a firm. 3 Please explain the different capital budgeting techniques, please discuss the pros and cons. 4 Please calculate the value of a 30 year bond with a 10% coupon , that is due in 8 years, with current interest rates of 6%. Please explain why it would be a premium or discount bond. 5 Please explain what is a callable bond . Why would a firm call a bond. 6 What are the major risks of conducting business outside of your domestic environment. Why would you consider conducting business internationally
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