Show your work. I want to see the numbers assigned to each variable within the excel spreadsheet.

The answer should be calculated via the TVM functions of Excel.

I must be able to follow your work - points will not be given if I have to struggle with it.

5) You've invested your savings at 7.5% and been able to accumulate $350,000. You'd like to withdraw $35,000 at the endof every year. How long until the balance has been reduced to $25,000? (round down to the nearest whole year)

a.

19 years

b.

9years

c.

14 years

d.

15years

e.

11years

23) A share of common stock has just paid an annual dividend of $3.75. The dividend growth rate is expected to be 12%. If the market's rate of return is 16%, what is the stock's price per share?

Select one:

A.

$105.00

B.

$93.75

C.

$50.63

D.

None of these answers are correct

37) Use the information below to calculate Weighted Average Cost of Capital, assuming that no new shares will need to be sold and a capital structure that is 50% debt and 50% equity.

coupon rate on bonds12.00%corporate tax rate30.00%anticipated dividend$5.00yield to maturity on bonds10.00%current share price$100.00floatation costs5.00%expected growth rate8.00%

a.

10.00%

b.

11.00%

c.

10.13%

d.

11.40%

38) A firm's common stock is currently selling for $78 per share. Last year's dividend payment was $2.50 per share. The expected constant annual growth rate for the dividend payment is 8%. The flotation cost is $5.00 per share. What is the cost of the firm's retained earnings?

Select one:

A.

11.70%

B.

12.46%

C.

11.46%

D.

None of these answers are correct

39) A firm pays $1.80 in annual dividends on its preferred stock, which is currently priced at $45.00. The firm's tax rate is 40% and will incur flotation costs of $2.00 per share. What is the firm's cost of preferred stock?

Select one:

A.

2.67%

B.

4.00%

C.

6.67%

D.

4.19%

40) A firm's common stock is currently selling for $78 per share. Last year's dividend payment was $2.50 per share. The expected constant annual growth rate for the dividend payment is 8%. The flotation cost is $5.00 per share. The firm has decided to issue new common stock to meet its financing needs. What will be the per share cost of the firm's new common stock?

Select one:

a.

11.21%

b.

11.46%

c.

11.70%

d.

12.01%