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if possible, please explain the steps in the casio calculator if the question can be solved with it. the answers are given, please include the
if possible, please explain the steps in the casio calculator if the question can be solved with it. the answers are given, please include the steps to the answer.
- Your investment over one year had a realized return of 8.65% and a dividend of $2.65. If the sale price was $42.58 per share, what was the cost of the investment, assuming you bought it at the beginning of the period. (ANS: 41.63)
- What is the dollar difference (on an absolute basis) in the present value of receiving $9,000 annually for seven years if you are comparing an ordinary annuity with an annuity due? Assume a discount rate of 8% per year? (ANS:3748.59)
- A manufacturer of video games develops a new game over two years. This costs $850,000 immediately and a second amount of $850,000 at the end of Year 2. When the game is released, it is expected to make $1.2 million per year for three years after that (i.e. from Year 3 to Year 5). What is the net present value of this decision if the cost of capital is 10%? (ANS: 913820.16)
- You have been offered a unique investment opportunity. If you invest $10,000 today, you will receive $1,200 in Year 1, $2,350 in Year 2, and $8,975 in Year 5. What is the NPV of the opportunity if the cost of capital is 9% per year?(ANS: -1088)
- CP Rail has a current share price of $75.50 and EPS of 1.50. Its competitor, CN Rail, has EPS of 4.25. Using the method of comparables, what is the expected price of CN Rail? (ANS: 213.92)
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