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Please answer all. It will be highly appreciated. Please answer using Financial calculator. 2. After years of working as a successful entrepreneur, you have decided
Please answer all. It will be highly appreciated. Please answer using Financial calculator.
2. After years of working as a successful entrepreneur, you have decided to sell your business. You have received two offers. Argon Corp has offered $14 million in cash at the time of the sale. Neon Inc has offered to pay $4 million at the time of the sale and another $13 million in two years. You expect to earn a return of 12% per year on all investments. Which offer should you accept? 3. Preferred stock in Piston Corp pays quarterly dividends of $1.00. It is trading for $25.00. What rate of return could you earn on Piston Corp? 4. To reward yourself for your newfound mastery of finance, you have decided to purchase a new car. You can afford monthly payments of $200. With your credit, the APR on your loan will be 9%. If you want to make payments for the next 3 years, how much can you afford to pay for a car? 5. You just won $150 million in the lottery. You have the choice between a lump-sum payment of $75 million or an annuity that pays you equal amounts of the $150 million each year for 30 years ($5 million per year). With your investment expertise, you expect to earn 6.5% on all investments. a) Which choice should you make? b) What size of annual payment we could create through investing the $75 million at 6.5% annually? c) At what expected return on investments would you be indifferent between the two optionsStep by Step Solution
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