CORP FIN FINAL PT C

24. The Cookie Shoppe expects sales of $2,500,000 next year at a 5% pretax profit margin and an average tax rate of 18%. If it chooses to pay out 40% of its earnings as dividends, what is the projected increase in retained earnings? (Show calculation)

25. You want to have $1 million in your savings account when you retire. You plan on investing a single lump sum today to fund this goal. You are planning on investing in an account which will pay 7.5% annual interest. Which of the following will reduce the amount that you must deposit today if you are to have your desired $1 million on the day you retire (there could be more than one answer)? A. Invest in a different account paying a higher rate of interest. B. Invest in a different account paying a lower rate of interest. C. Retire later. D. Retire sooner.

26. In calendar 2018, you earned a salary of $55,000. You expect to be given 4% annual merit increases on January 1 of each year for the foreseeable future. What is your projected annual salary in 2023? (Show calculation)

27. You have won a contest that will pay you $10,000 a year at the end of each of the next 5 years. Based on a discount rate of 8% per year, what is the annuity worth to you today? (Show calculation)

28. You would like to contribute $70,000 towards your grandchilds college education 16 years from now. How much money must you set aside today for this purpose if you believe you can earn 7.5% per year on your investment? (Show calculation)

PLEASE SHOW YOUR WORK NO SCREEN SHOTS OR IMAGES OF RESPONSE. PLEASE TYPE YOUR ANSWER OR UPLOAD DOCUMENT IF REQUIREMENTS MENTIONED ABOVE ARE NOT MET I WILL GIVE A NEGATIVE RATING