1-Jack rabbits has saved $9,000 annually for the last 35 years in an account earning 8%. If Jack estimates that he will live for another 25 years, how much would he be able to start withdrawing annually for his retirement (8% interest).

2-reading a stock quote, you see that builtrite pays a $2.00 dividend and has a PE OF 16. You also note that builtrite pays out half of its earnings as dividends. What is the price of Builtrite's stock?

3-what is the value of a $100 par value preferred stock with a 4.0% coupon if investors require a 5% return?

4- Builtrite company has been generating stable revenues but sees no growth in it for the foreseeable future. The company's last dividends was $3.25, and it is unlikely to change the amount paid out. If the required rate of returns is 12 percent, what is the stock worth today?

5- Jay Aquire is considering the purchase of the following: a builtrite, $1000 par, 6 7/8% coupon rate, 15 year maturity bond which is currently selling for $1020. If jay purchases this bond for the quoted price and holds the bond for 5 years when current market interest rates are 8%, what should he expect to sell the bond for?