exam1B.ch1ch2ch2Ach5partial - Name _ Peoplesoft Number _...

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Name __________________________________ Peoplesoft Number __________________________________ University of Houston C. T. Bauer College of Business Finance 3332 Fall, 2010 Exam 1B To receive full credit: Clearly indicate your answer Financial functions may be used only for finding annuity factors All inputs to find annuity factor must be shown Carry all decimals, rounding only final answer Decimal places should be rounded to four places (two in percent form) Currency answers rounded to the nearest cent, where applicable Include applicable units ($, %, etc.) on answers 1. Charles is planning to retire in 32 years. He wants to be able to withdraw $90,000 per year for 38 years during his  retirement. How much must he save each year in order to meet his retirement objective if his account earns 6 percent per  year? (8) 2. How much must Cody deposit in an account which earns 5 percent per year, if she wants to have $12,000 in her  account in 18 years? (6) 3.  I bought stock in a company whose dividends have grown from $0.12 per share to $0.80 per share over the past 12  years. What has been the annual rate of growth in the firm’s dividends? (6) 4. Last year Hugo purchased 500 shares of stock for $20 per share, and over the last year, he received four quarterly  dividend checks of $500.00 each.  He just sold the stock for $18 per share, but he expects the stock price to fall to $14  over the next year. Calculate Hugo’s ex post holding period return. (8)
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exam1B.ch1ch2ch2Ach5partial - Name _ Peoplesoft Number _...

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