## 4 Caspian Sea is considering raising $16.00 million by issuing preferred stock. They believe the market…

4

Caspian Sea is considering raising $16.00 million by issuing

preferred stock. They believe the market will use a discount rate

of 8.70% to value the preferred stock which will pay a dividend of

$3.71. How many shares will they need to issue?

preferred stock. They believe the market will use a discount rate

of 8.70% to value the preferred stock which will pay a dividend of

$3.71. How many shares will they need to issue?

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Answer format: Currency: Round to: 0 decimal places.

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#5

A firm will pay a dividend of $2.01 next year. The dividend is

expected to grow at a constant rate of 3.75% forever and the

required rate of return is 14.47%. What is the value of the

stock?

expected to grow at a constant rate of 3.75% forever and the

required rate of return is 14.47%. What is the value of the

stock?

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Answer format: Currency: Round to: 2 decimal places.

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not_submitted

#6

Derek plans to retire on his 65th birthday. However, he plans

to work part-time until he turns 75.00. During these years of

part-time work, he will neither make deposits to nor take

withdrawals from his retirement account. Exactly one year after the

day he turns 75.0 when he fully retires, he will wants to have

$2,760,505.00 in his retirement account. He he will make

contributions to his retirement account from his 26th birthday to

his 65th birthday. To reach his goal, what must the contributions

be? Assume a 5.00% interest rate.

to work part-time until he turns 75.00. During these years of

part-time work, he will neither make deposits to nor take

withdrawals from his retirement account. Exactly one year after the

day he turns 75.0 when he fully retires, he will wants to have

$2,760,505.00 in his retirement account. He he will make

contributions to his retirement account from his 26th birthday to

his 65th birthday. To reach his goal, what must the contributions

be? Assume a 5.00% interest rate.

Submit

Answer format: Currency: Round to: 2 decimal places.

unanswered

not_submitted

#7

A bank offers 8.00% on savings accounts. What is the effective

annual rate if interest is compounded semi-annually?

annual rate if interest is compounded semi-annually?

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Answer format: Percentage Round to: 4 decimal places (Example:

9.2434%, % sign required. Will accept decimal format rounded to 6

decimal places (ex: 0.092434))

9.2434%, % sign required. Will accept decimal format rounded to 6

decimal places (ex: 0.092434))