Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1) GE just paid an annual dividend pf $4. if the dividends are expected to grow by 4.5% per year what will be the dividend

1) GE just paid an annual dividend pf $4. if the dividends are expected to grow by 4.5% per year what will be the dividend in 5 years?
2) the annual interest rate is 3%. what is the present value(PV) of $1000 that you will receive in 19 years?
3) you expected to receive a pyment of $1000 from a trust fund in 13 years. the interest anual rate is 3%. what is the present value of that amount? if you invest $1000 at the same interest rate for another 13 years when you receive it in 13 years,what will be the future?
4) the prefferes stock of general motors pays an annual dividend pf $0.9 forever. the appropriate doscount rate is 3% per year. what is the present value of all dividends?
5) you yook put some student loans in college and now you owe $6,000. you consolidated the loans into one amortizing loan, whoch has annual interest rate of 3%(apr) If you make monthly payments of $200 how many months will it take to pay off the loan?Fractional values are acceptable
6) 10 year treasury bonds yield 3.6% and 10 year corporate bonds yiels 7.15%. the maturity risk premium on both 10 yearntreasury and corporate bonds is 1.3%. corporate bonds habe a 0.65% liquidity premium, while t-bonds have a zero liquiduity premium. what is the default risk on corporate bonds?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials Of Health Care Finance

Authors: William O. Cleverley, Andrew E. Cameron

6th Edition

0763742368, 978-0763742362

More Books

Students also viewed these Finance questions

Question

What processes are involved in perceiving?

Answered: 1 week ago