Question

1. If you deposit $1,000 at the end of year one, $2,000 at the end of year two, and $3,000 at the end of year three, approximately how much will you have at the end of 3 years? Assume a 7% annual interest rate throughout and all the deposits are made at the end of the year.

1. $3,675
2. $3,915
3. $6,000
4. $6,285
5. $6,585

(**Please show the keystrokes to use on the financial calculator to solve for this question. Thanks.)

2. A corporate bond with a face value of $1,000 matures in 4 years and has an annual rate of 6.25%. The current annual market rate is 7%. Interest is paid semi – annually.

1. What is the present value of the coupon payments: _____________

2. What is the present value of the bond’s $1,000 face value at maturity: ______

3. What is the total bond value: __________

(**Please show the steps/calculations to solve for this problem. All 3 parts.)

3. You have the following given information for the Victoria Company: Sales - $2,000,000; Net Income - $400,000; Dividends - $100,000; Current Assets - $400,000; Fixed Assets - $3,500,000; Current Liabilities - $200,000; LTD - $1,000,000; Common Stock - $2,000,000 and Retained Earnings - $800,000.

1. Create the Balance Sheet
2. Calculate the firm’s ROE
3. Calculate the Plowback ratio
4. Calculate the Sustainable Growth Rate

(**Please show the calculations used to solve this problem. All 3 parts.)

Please help me solve the above three questions (Questions 1, 2, and 3 all parts. Thanks!!

Answer 1

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