(Solving for rof an annuity You lend a friend $40,000, which your friend will repay in 15 equal annual end-of-year payments of $7,000, with the first payment to be received 1 year from now. What rate of return does your loan receive? The rate of return your loan will receive is % (Round to two decimal places.) (Present value) The state lottery's million-dollar payout provides for $3 million(s) to be paid over 19 years in 20 payments of S150,000. The first $150,000 payment is made immediately, and the 19 remaining $150,000 payments occur at the end of each of the next 19 years. If 9 percent is the appropriate discount rate, what is the present value of this stream of cash flows? If 18 percent is the appropriate discount rate, what is the present value of the cash flows? a. 19 percent is the appropriate discount rate, what is the present value of this stream of cash flows? (Round to the nearest cent.) (Evaluating profitability) Last year, Stevens Inc. had sales of $396,000, with a cost of goods sold of $116,000. The firm's operating expenses were $125,000, and its increase in retained comings was $50,000. There are currently 22,100 common stock shares outstanding and the firm pays a $1.66 dividend per share a. Assuming the firm's earnings are taxed at 21 percent, construct the firm's income statement, b. Compute the firm's operating profit margin c. What was the times interest eamed? a. Assuming the firm's earings are taxed at 21 percent, construct the firm's income statement (Round to the nearest dollar. NOTE: You may input expense accounts as negative values.) s 396,000 -116,000 $ Stevens Inc. Income Statement Sales Cost of goods sold Gross profits Operating expenses Operating profits Interest expense Earnings before taxes Income taxes 280,000 .125,000 $ 155,000 -32,550 $ Net Income 86,465