1. You are planning for your retirement and have decided the following: you will retire in 35 years and would like to have $8,000 per month as retirement income for 30 years of retirement. You have access to an account that earns a 7% rate of return. a. How much will you need to have when you retire to be able to withdraw the desired $8,000 per month during your years of retirement? b. If you plan to save by making equal monthly deposits into your account from now until when you retire, how much does that deposit need to be? 2. A six-year annuity of $8500 quarterly payments will begin 9 years from now. The discount rate is 9%, compounded quarterly. a. How much is this annuity worth 5 years from now? b. How much is this annuity worth today? 3. A bond has face value of $1,000, a coupon rate of 12%, YTM of 9%, and matures in 20 years. The bond pays interest semiannually. a. What is the value of this bond? b. What is the current yield for this bond this year? c. What is this bond's capital gains yield this year? d. What is this bond's value 6 years from now? e. What will this bond's current yield be 6 years from now? f. What will this bond's capital gains yield be eight years from now? 4. Consider a stock that most recently paid a dividend of $0.75. The company plans to increase dividends by 50% each year for the next 3 years, then by 20% each year for 4 years, and then level off to a permanent growth rate in dividends of 6%. a. If the required return for this stock is 11%, what is the value of the stock today? b. What are dividend yield and capital gains yield this year? c. What will be the value of the stock in 7 years? d. What will be the dividend yield and capital gains yield in 7 years? 5. Consider a stock that is not planning to pay a dividend until 10 years from now. The first dividend paid (D11) will be $2. After that, the company will maintain a constant dividend growth rate of 5% forever. The required return for this stock is 8%. a. What is the value of the stock in 10 years? b. What are dividend yield and capital gains yield in 10 years? c. What is the value of the stock today? d. What are dividend yield and capital gains yield this year? e. What is the value of the stock in 3 years? f. What are dividend yield and capital gains yield in 3 years? g. What will the dividend yield be 50 years from now? 6. An unconventional bond offers a coupon rate of 5% for the first 5 years of the bond and 7% for the remaining 8 years of the bond. Face value is $1,000 and the yield to maturity is 8%. a. Find bond value, current yield, and capital gains yield this year. b. Find bond value, current yield, and capital gains yield next year. c. Find bond value, current yield, and capital gains yield in 5 years. 7. A company has net income of $1,500 and profit margin of 12%. The companys depreciation expense for the year was $500, interest expense was $300, and the average tax rate is 35%. a. What was the companys taxable income? b. What was the companys EBIT? c. What was the companys Operating Cash Flow? 8. Suppose you find that a particular company generates $.40 in sales for every dollar in total assets. How often does this company turn over its total assets