James plans to fund his individual retirement account, beginning today, with 20 annual deposits of exist2,000, which he will continue for the next 20 years. If he can earn an annual compound rate of 8 percent on his deposits, the amount in the account upon retirement will be____. A) exist19, 636 B) exist98, 846 C) exist21, 207 D) exist9, 524 exist1, 200 is received at the beginning 1, exist2, 200 is received at the beginning of year 2, and exist3, 300 is received at the beginning of year 3. If these cash flows are deposited at 12 percent, their combined future value at the end of year 3 is ____. A) exist12, 510 B) exist6, 700 C) exist8, 142 D) exist17, 072 Find the present value of the following stream of a firm's cash flows, assuming that the firm's opportunity cost is 14 percent. A) exist131, 068 B) exist120, 820 C) exist 19, 830 D) exist14, 850 A firm has an issue of exist1,000 par value bonds with a 9 percent stated interest rate outstanding. The issue pays interest annually and has 20 years remaining to its maturity date. If bonds of similar risk are currently earning 11 percent, the firm's bond will sell for___. A) exist1, 123.33 B) exist840.73 C) 4716, 657 D) exist1,000 Calculate the value of a exist1,000 bond which has 10 years until maturity and pays quarterly interest at an annual coupon rate of 12 percent. The required return on similar-risk bonds is 20 percent. A) exist845.66 B) exist2, 201.08 C) exist656.82 D) exist835.45 Zheng Corporation plans to issue new bonds to finance its expansion plans. In its efforts to price the issue, Zheng Corporation has identified a company of similar risk with an outstanding bond issue that has an 8 percent coupon rate having a maturity of ten years. This firm's bonds are currently selling for exist1, 091.96. If interest is paid annually for both bonds, what must the rate of the new bonds be in order for the issue to sell at par? A) 13.99% B) 15.25% C) 12.00% D) 14.54% Nico Crop issued bonds bearing a coupon rate of 12 percent, pay coupons semiannually, years remaining to maturity, and are currently priced at exist940 per bond. What is the yield to maturity? A) 13.99% B) 15.25% C) 12.00% D) 14.54% A firm has an issue of preferred stock outstanding that has a stated annual dividend of exist4. required return on the preferred stock has been estimated to be 16 percent. The value of the preferred stock is ___. A) exist25 B) exist50 C) exist16 D) exist64