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To enhance your understanding of financial concepts, please complete the following problems in your Corporate Finance textbook. Chapter 4, problem 2a, b, and c (pages

To enhance your understanding of financial concepts, please complete the following problems in your Corporate Finance textbook.

Chapter 4, problem 2a, b, and c (pages 117).

Chapter 4, problem 3 (page 118).

Chapter 4, problem 4 (page 118).

Chapter 4, problem 5 (page 119).

Chapter 4, problem 11 (page 122).

Chapter 5, problem 2a (page 158).

Chapter 5, problem 3 (page 158).

Chapter 6, problem 2 (page 190).

Chapter 6, problem 4 (page 190).

UNIT 2: TEXTBOOK PROBLEMS
CHAPTER 4: PROBLEM 2 (a through c)
A. B. C.
Present Value 3,200 3,200 3,200
Interest Rate 6% 8% 6%
Number of Years 10 10 20
Future Value =
CHAPTER 4: PROBLEM 3
A. B. C. D.
Future Value = 15,451 51,557 886,073 550,164
Interest Rate 7% 9% 14% 16%
Number of Years 12 8 19 24
Present Value =
CHAPTER 4: PROBLEM 4
A. B. C. D.
Present Value = 217 432 41,000 54,382
Future Value 307 896 162,181 483,500
Number of Years 3 10 13 26
Interest Rate
CHAPTER 4: PROBLEM 5
A. B. C. D.
Present Value = 625 810 18,400 21,500
Future Value 1,284 4,341 402,662 173,439
Interest Rate 9% 11% 7% 10%
Number of Years (or Periods)
CHAPTER 4: PROBLEM 11
Discount Rate 5% 13% 18%
Year 1: $960 $960 $960
Year 2: $840 $840 $840
Year 3: $1,935 $1,935 $1,935
Year 4: $1,350 $1,350 $1,350
Present Value @ 5%, 13%, and 18% = (Note: Use the built-in NPV formula in Excel.)
CHAPTER 5: PROBLEM 2
A.
Settlement (Think of Settlement as the beginning of the duration of the bond.)
Maturity (Think of Maturity as the end of the duration of the bond.)
Rate (Coupon Rate)
YTM (Yield to Maturity or Required Rate of Return)
Redemption (Bonds Face Value, Par Value, or Fair Price; Note that is $100, not $1,000. You make the adjustments by multiplying the answer by 10.)
Frequency (Coupon payments are semiannual, so you put in a 2. If they are annual, then you input a 1.)
Basis (Always leave it blank.)
Bond Price (The answer. But you need to multiply it by 10 to get the actual bond price.)
Multiply by 10 (Microsoft gives the bond price in 2 digits. You need to multiply it by 10 to get the actual bond price.)
CHAPTER 5: PROBLEM 3
Settlement (Think of Settlement as the beginning of the duration of the bond.)
Maturity (Think of Maturity as the end of the duration of the bond.)
Rate (Coupon Rate)
Pr (The bonds price per $100 face value)
Redemption (Bonds Face Value, Par Value, or Fair Price; Note that is $100, not $1,000.)
Frequency (Coupon payments are semiannual, so you put in a 2. If they are annual, then you input a 1.)
Basis: (Always leave it blank.)
YTM
CHAPTER 6: PROBLEM 2
Dividend Payment $1.99
Dividend Growth Rate 4.50%
ZYX Stock Price $31
Required Return =
CHAPTER 6: PROBLEM 4
Dividend $2.65
Dividend increase per year 4.75%
Required Return (Return on Investment) 11%
Stock Price =

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