7.Helen is considering an investment of $3,500 each year for 18 years, starting at the end of the this year. The investment will pay 5 % interest. How much will this investment ($) be worth at the end of the 12 years? Round your answer to the nearest $.

8.You have just won the lottery and received $10,000. You deposited your winnings into an account that pays 7.5 % interest compounded annually. How long will you have to wait until your winnings are worth $15,000?

9.Dustin is considering an investment that will pay $3,000 a year for 10 years, starting 1 year from today. How much should Dustin pay for this investment if he wishes to earn a 9% rate of return?

10.Warren's Diner needed a new location. This establishment spent $65,000 to refurbish an old shop and create the current facility. The firm borrowed 75 percent of the refurbishment cost at 8 percent interest for 11 years. What is the amount of each monthly payment?

11.You are given the following data for year 1 for a project. Revenues = $75 million, Fixed costs = $20 million; Total variable costs = $35 million; Depreciation = $8 million; Tax rate = 25%. Calculate the after tax cash flow ($ million) for the project for year-1.

12.Scenic Images paid an annual dividend of $1.85 per share last year. Management just announced that future dividends will increase by 3 % annually. What is the amount of the expected dividend in year 4?

13.Merrigo Inc's Earnings and Dividends per share are expected to grow indefinitely by 1.5% a year forever. The company is expected to pay a dividend per share of $1.75 next year. The market capitalization rate (discount rate) is 8%. Estimate the current value of the stock.

14.The beta of Con Edison is 0.40. The Treasury Bond rate (risk-free rate) is 2%. The expected rate of return from the market is 6%. Calculate the expected rate of return (%) from Con Edison (Cost of Equity) as per CAPM. Hint: Return = Risk-free Rate + beta*(Market Return - Risk-free Rate);

15. The Cost of Equity for a firm is 12%. The Pre-Tax Cost of Debt is 8%. The Market Value of the firm's Equity is $1,750 million and the Debt is $1,250 million. The Tax Rate is 35%. Calculate the Weighted Average Cost of Capital (WACC) for the firm.

16. Smiline & Co pays a constant yearly dividend of $1.25 per share. How much are you willing to pay for one share if you require a 5.75 % rate of return?

17. A new boutique line is expected to cost $25 million in initial investment. It is estimated that the business will generate $7 million after-tax cash flow each year, for the next 5 years. At the end of 5 years it can be sold for $15 million. What is the NPV (Net Present Value) of the project at a discount rate of 7%?

18. A 5-year US Government Bond has a Face Value of $1,000 and a Coupon rate of 3% paid annually. If the current Interest rate is 2% pa, what would be the Bond's Price? Hint: calculate the Present Value (PV) of the Bond.

19. KaesiCo. has Total Assets of $6,500,000 and a Total Asset Turnover of 1.3 times. If the return on Assets is 9.25%, what is the Profit Margin (%)?

20. Gap reported the following numbers ($ million) for the year ended Jan 30, 2016:

Calculate the company's Earnings per share (EpS) in $.

Give your answer to 2 decimals, but do not enter $ sign in answer box.

Ratio	Value
Net Income	920
Shares o/s (millions)	397
Stock Price ($)	$23.71
Total Equity	2,545

21. Continuing the previous problem:

Gap reported the following numbers ($ million) for the year ended Jan 30, 2016:

Calculate the company's Market-to-Book ratio.

Give your answer to 2 decimals, but do not enter $ sign in answer box.

Ratio	Value
Net Income	920
Shares o/s (millions)	397
Stock Price ($)	$23.71
Total Equity	2,545

22. Continuing the previous problem:

Gap reported the following numbers ($ million) for the year ended Jan 30, 2016:

Calculate the company's PE ratio.

Give your answer to 2 decimals, but do not enter $ sign in answer box.

Ratio	Value
Net Income	920
Shares o/s (millions)	397
Stock Price ($)	$23.71
Total Equity	2,545

23. An investor is trying to assess the likely return from a stock he is considering to invest.

The returns in the last 5 years are given in the table below.

Returns %

	5
	9
	7
	11
	8

Calculate the Standard Deviation (%) of Returns for the stock

24. Suppose you invest 30% of your portfolio in Ford stock and the balance in Facebook stock.

The Standard Deviations of their annualized daily returns are 12% & 18%, respectively.

Assume a correlation coefficient of 0.2.

Calculate Portfolio variance.