- How to calculate cash flow to stockholders?

- You just won the lottery. You and your heirs will receive $25,000 per year for ever, beginning one year from now. What is the present value of your winnings at an 8% discount rate?

- If you deposit $2,500 at the end of each 6 monte into an account which earns 5.5% interest compounded quarterly, how much will be in the account in 5 years?

- The bonds issued by B&H Enterprises bear a 7% coupon which is payable semi-annually. The bonds mature in 11 years and have a $1,000 face value. Currently, the bonds sell at par. What is the yield to maturity?

- Elise's Crafts needs $225,00 today to purchase some new equipment. They are planning on issuing 10-year zero coupon bonds. The current market rate of interest is 6.5%. How many bonds must Elise's Crafts sell to raise the money they need?

- Mayflower, Inc. has some 7% semi-annual coupon bonds on the market selling at $1,012. The bonds have 9 years left to maturity. What is the effective annual yield on these bonds?

- A zero coupon bond with a face value of $1,000 is issued at an initial price of $375. The bond matures in 20 years. What is the implicit interest, in dollars, for the first year of the bond's life?

- Today Katerina purchased a bond at a quoted price of 98.7. The bond matures in 5 years, pays semi-annual interest, and has a 6,5% coupon rate. If Katerina hold the bond to maturity, what real rate of return will she earn if inflation remains constant at 2%?

- How to calculate the dividen growth rate?

- You have decided that you would like to own some shares of Martin & Miller but need an expected 15% rate of return to compensate for the perceive risk of such ownership. What is the maximum you are willing to spend today to buy one share of M&M stock if the company pays a constant $3 annual dividend per share?

- Daily movers in a relatively new firm. The company paid its first annual dividend yesterday in the amount of $.40 a share. The company plans to double each annual dividen payment for the next 2 year. After that time, it is planning on paying a constant of $2 per share indefinitely. What is one share of this stock worth today if the market rate of return on similar securities is 14.5%?

- How to calculate the market price of stock?

-