1. You are going to lease a car for 5 years. Assume that will be no residual value after 5 years. The annual lease payment is 10000. If the APR is 5% what is the price of the car? Assume the first payment is made immediately.

2. You want to start moving money to pay for your son's college tuition. Your son will go to college 16 years from now and he will need 35000 per year for 4 years starting in year 16. If the interest rate is 5% per year, how much of a lump sum amount should you deposit?

3. You deposit 5500 today. You will earn an annual rate of 3.5 percent for 4 years and then earn an annual rate of 2.5 percent for 6 years. How much will you have in 10 years?

4. What is maximum sales without external financing of any kind?

Net Income 150 Dividends 40. Total Assets 2055

5. A firm issued a 30-year bond 5 years ago. It has a 7% coupon rate and will pay semiannual coupons. If the bond has a face value of 1000 and 4.5% yield to maturity what should be the price of the bond today?

6. Bond A matures in 10years and has a coupon rate of 6% paid semi-annually. The face value is 1000 and the current yield to maturity is 7%. If the market interest rate decreases by 1% to 6% what will be the percentage change in bond A's price?

7. For the year the company had a net income of 10500 and paid a dividend of 4500. The company also issued 4000 in new stock during the year if the company had beginning retained earnings of 32500 what is the ending retained earnings balance?

8. You are saving 2000 per month to accumulate 10000. If the interest is 6% per year compounded monthly how long have to save to achieve you rgoal?