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Note: please provide step-by-step solutions. Thanks! 14. You just won the lottery and you're given the choice of a $75,000 today or a $10,000 annuity
Note: please provide step-by-step solutions. Thanks!
14. You just won the lottery and you're given the choice of a $75,000 today or a $10,000 annuity for 15 years with the first payment coming one year from today. Compute the rate of return built into this annuity. HINT: in other words, what interest rate will make the PV of this $10,000 annuity be $75,000? 9.25% b. 10.25% 11.00% d. 11.35% 12.05% a. c. e. a. 15. A firm earned $1.00 per share in 2000. Ten years later, in 2010, it earned $2.00 per share. What was the growth rate in earnings per share for that firm over the 10-year period? 6.70% b. 7.18% c. 20% d. 50% 75% eStep by Step Solution
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