2. 3. If you invest $50 for 3 years at 12% compounded semi-annually, How much will your investment grow to? (5 Points) Hughes Co. is growing quickly. Dividends are expected to grow at a 25 percent rate for the next three years, with the growth rate falling off to a constant 7 percent thereafter. If the required return is 12 percent and the company just paid a $2.40 dividend, what is the current share price? (10 Points) 4. Cusic Industries had the following operating results for 2010: sales =$15,300; cost of goods sold = $10,900; depreciation expense = $2,100; interest expense = $520;dividends paid = $500. At the beginning of the year, net fixed assets were $11,800, current assetswere $3,400, and current liabilities were $1,900. At the end of the year, net fixed assets were$12,900, current assets were $3,950, and current liabilities were $1,950. The tax rate for 2010 was40 percent. a. What is net income for 2010? (3 Points) b. What is the operating cash flow for 2010? (4 Points) 5. A prestigious investment bank designed a new security that pays a quarterly dividend of $5 in perpetuity. The first dividend occurs one quarter from today. What is the price of the security if the stated annual interest rate is 7 percent, compounded quarterly? (10 Points) 6. What is the present value of an annuity of $5,000 per year, with the first cash flow received three years from today and the last one received 25 years from today? Use a discount rate of 8 percent. (10 Points) 7. How is the future value of a single cash flow computed? (3 Points) How is the present value of a series of cash flows computed. (3 Points)