1, Holistic Holidays Limited has an employment contract with Loretta Bloom, its newly hired CEO.The contract requires a lump sum payment of $2.10 million be paid to Ms. Bloom upon the successful completion of her first 5 years of service. Holistic Holidays wants to set aside an equal amount of money at the end of each year to cover this anticipated cash outflow and expects to be able to earn 7.15% APR on the funds.How much must Holistic Holidays set aside each year for this purpose?

a.$72,815.83

b.$471,929.78

c.$1,486,820.08

d.$364,079.17

e.$420,000.00

2, Paramount Landscape Services is considering the acquisition of Barker Gardens, Inc.Paramount's management team believes Barker can generate cash flows of $154,727, $101,050, and $534,183 over the next three years, respectively.After that time, they feel the business will be worthless.Paramount has determined that a 4.78% APR rate of return is applicable to this potential acquisition.Given this information, what is an appropriate price that Paramount Landscape Services should be willing to pay to acquire Barker Gardens, Inc. today?

a. $704,069

b. $737,724

c. $809,936

d. $671,950

e. $789,960

3, Wicker Creations paid an annual dividend of $2.95 per share last month.Today, the company announced that future dividends will be increasing by 4.60% annually.If you require a 8.11% rate of return, how much are you willing to pay to buy one share of this stock today?

a.$84.05

b.$336.18

c.$87.91

d.$38.00

e.$3.87