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Please Answer questions 18-21. Thank You!!!! 18. You plan to invest $5,000 at the end of each of the next 10 years in an account
Please Answer questions 18-21. Thank You!!!!
18. You plan to invest $5,000 at the end of each of the next 10 years in an account that has a 9 percent nominal rate with interest compounded daily. How much will be in your account at the end of the 10 years? a. $190,574 b. $179,836 c. $268,064 d. $ 77,490 e. $280,221 Holmgren Hotels' stock has a required return of 11 percent. The stock currently pays a dividend of $1.00 per share. The dividend is expected to stay the same for two years. After two years, the dividend is expected to grow at a rate of 7 percent forever. What should be Holmgren's stock price today? a. S 84.80 b. $104.34 c. $ 23.42 d $ 44.13 e. $ 17.27 19. 20. Your company's stock sells for $40 per share, its next dividend (Di) is $2.00 and its growth rate is a constant 5 percent. What is the fim's cost of equity? a. 9.20% b. 10.25% c. 10.50% d 10.83% e. none of the above 21. Polk Products is considering an investment project requiring a net investment of $45,000 and providing the following end of year net cash flows: Year 1 2 3 Project Cash Flow 80,000 90,000 40,000 The company has a 10 percent cost of capital. What is the project's net present value? a. $132,160 b. $140,000 c. $113,978 d. $ 158,978 18. You plan to invest $5,000 at the end of each of the next 10 years in an account that has a 9 percent nominal rate with interest compounded daily. How much will be in your account at the end of the 10 years? a. $190,574 b. $179,836 c. $268,064 d. $ 77,490 e. $280,221 Holmgren Hotels' stock has a required return of 11 percent. The stock currently pays a dividend of $1.00 per share. The dividend is expected to stay the same for two years. After two years, the dividend is expected to grow at a rate of 7 percent forever. What should be Holmgren's stock price today? a. S 84.80 b. $104.34 c. $ 23.42 d $ 44.13 e. $ 17.27 19. 20. Your company's stock sells for $40 per share, its next dividend (Di) is $2.00 and its growth rate is a constant 5 percent. What is the fim's cost of equity? a. 9.20% b. 10.25% c. 10.50% d 10.83% e. none of the above 21. Polk Products is considering an investment project requiring a net investment of $45,000 and providing the following end of year net cash flows: Year 1 2 3 Project Cash Flow 80,000 90,000 40,000 The company has a 10 percent cost of capital. What is the project's net present value? a. $132,160 b. $140,000 c. $113,978 d. $ 158,978
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