An investor has asked for your help with the following time value of money applications. Table 6-4. (Use appropriate factorfe) from the tables provided. Round the PV factors to 4 decimals.) Required: Q. What is the present value of $51,000 to be received in four years using a discount rate of 14%? (Round your answer to 1 decimal place.) Present value b. How much should be invested today at a return on investment of 14% compounded annually to have $51,000 in four years? (Round your answer to 1 decimal place.) Amount to be invested c. If the return on investment was greater than 14% compounded annually, would the amount to be invested today to have $51000 in four years be more or less than the answer to part b? More Less Net Answer the following questions. Table 6-4 or Table 6-5. (Use appropriate factor(e) from the tables provided. Round the PV factors to 4 decimals.) Required: a. Spencer Co.'s common stock is expected to have a dividend of $6 per share for each of the ned 15 years, and it is estimated the the market value per share will be $132 at the end of 15 years. If an investor requires a return on investment of what is the maximum price the investor would be willing to pay for a share of Spencer Co. common stock today? b. Mario bought a bond with a face amount of $1.000, a stated interest rate of 6%, and a maturity date 10 years in the future for The bond pays interest on an annual basis. Three years have gone by and the market interest rate is now 10%. What is the market value of the bond today? c. Alexis purchased a U.S. Series EE savings bond for $500, and six years later received $709.22 when the bond was redeemed What average annual return on investment did Alexis earn over the six years? Complete this question by entering your answers in the tabs below. Required A Required B Required C Spencer Co.'s common stock is expected to have a dividend of $6 per share for each of the next 15 years, and it is estimated that the market value per share will be $132 at the end of 15 years. If an investor requires a return on investment of 14%. what is the maximum price the investor would be willing to pay for a share of Spencer Co. common stock today? (Do not round intermediate calculations, Round your answer to 2 decimal places.) Maximum price Required B Pray 508 EN Answer the following questions. Table 6-4 or Table 6-5. (Use appropriate factor(s) from the tables provided. Round the PV factors to 4 decimals.) Required: a. Spencer Co.'s common stock is expected to have a dividend of $6 per share for each of the next 15 years, and is estimated that the market value per share will be $132 at the end of 15 years. If an investor requires a return on investment of 14%What is the maximum price the investor would be willing to pay for a share of Spencer Co. common stock today? b. Mario bought a bond with a face amount of $1,000, a stated interest rate of 6% and a maturity date 10 years in the future for 5978 The bond pays interest on an annual basis. Three years have gone by and the market interest rate is now 10. What is the market value of the bond today? c. Alexis purchased a U.S. Series EE savings bond for $500, and six years later received $709.22 when the bond was redeemed What average annual return on investment did Alexis earn over the six years? Complete this question by entering your answers in the tabs below. Required A Requirdess Required C Mario bought a bond with a face amount of 51,000, a stated interest rate of 6% and a maturity date 10 years in the future for $978. The bond pays interest on an annual basis. Three years have gone by and the market interest rate is now 107 What is the market value of the bond today? (Do not round intermediate calculations. Round your answer to 2 decimal places. Market value Required >
