Chapters 1 and 5 1-What is meant by maximization of shareholders' wealth? 2-Explain the agency relationships that exist in a corporation. 3-Suppose you will need $8000, 6 years from now. How much money you need to deposit toda in order to have $8000 in 6 years if you can earn an annual compounded interest of 5%. 4-Suppose you will deposit the following amounts into your savings account, earning 7% annually compounded interest. How much you will have at the end of the 4'h year? Yri - $1,000 Yr2 - $2,000 Yr3 = $3,000 Yr4 - $4,000 5- If you buy a factory for $250,000 and the terms are 20 percent down, the balance to be paid off over 30 years at a 12 percent rate of interest on the unpaid balance, what are the 30 equal annual payments? 6-You deposit $5000 today in an account earing 4% annual interest and keep it for 5 years. In 5 years, you add $15.000 to your account, but the rate on your account changes to 8% annual interest (for existing balance and new deposit). You leave the account untouched for an additional 10 years. How much do you accumulate? 7-Two brothers each open IRAs in 2009 and plan to invest $3,000 per year for the next 30 years. John makes his first deposit on January 1, 2009. and will make all future deposits on the first day of the year. Bill makes his first deposit on December 31, 2009. and will continue to make his annual deposits on the last day of each year. At the end of 30 years. How much the difference in the value of the IRAS (rounded to the nearest dollar), assuming an interest rate of 7% per year. will be