5 60 i 596 0.4296 PV$1 0.78353 0.77921 FV$1 1.27628 1.28336 PVA 4.32948 52.99071 FVA 5.5256 68.0061 1. You can afford to pay $425 in monthly payments to purchase a car today and will be making these payments for the next 5 years. What is the most your car can cost if your borrowing rate is 5%? (round to nearest dollar) PVA n 10 10 For 2 - 3 use the following: The company issues 8% 5-year bonds with a total face amount of $500,000 with interest paid semi- annually. The market rate of interest is 8.1%. % PV 4.00% 0.67556 8.1109 4.05% 0.67232 8.0907 2. What is the issue price of the bond? $. round to nearest dollar 3. What is the interest expense for the first interest payment? $ _round to nearest dollar For 4 - 5 use the following Best Incorporated Balance Sheet (partial) At December 31, Year 6 Stockholders' Equity: Preferred stock (par $50.00) $50,000 Common stock (par $0.20) 100,000 Additional Paid in capital 6,902,000 Total paid in capital 7,052,000 Retained earnings 1,540,000 Treasury stock (10,000 common shares) (170,000) Total stockholders' equity $8,422.000 Assume that the company sold 4,000 shares of its treasury stock for $25 per share. I 4. How much would additional paid in capital change? $_ 5. How much would Stockholders' Equity change? $