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1. Albert Pujols hit 47 home runs in 2009. If his home-run output grew at a rate of 12% per year, what would you expect Albert's home run total to be at the end of 5 years? n=5 i = 12% PV = 47 FV = ?
1. Set up a yearly amortization schedule for a $25,000 loan to be repaid in equal installments at the end of each of the next 3 years. The interest rate is 10 compounded annually. PV = 25,000 FV = 0 n
Answers Chapter 7 h/w
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1. a. $1,000(1 + .05) = x
x = $1,000(1.629) = $1,629
$1,000 grows to $1,629 at 5% for ten years, of which $629 in interest. The 1.629 is the
interest factor for the future val
THE COLLEGE OF NEW JERSEY SCHOOL OF BUSINESS DEPARTMENT OF FINANCE & INTERNATIONAL BUSINESS
FIN 201: Fundamental Financial Methods Syllabus, SPRING 2012 Professor: Office: Telephone: Email: Office hou
CHAPTER 7 Stocks Characteristics and Valuation
Features of common stock Determining common stock values Preferred stock Determining preferred stock values
WSJ Article
Next Class Read "Placing
Ch. 6 Bonds and Their Valuation
Key Features of Bonds Bond Valuation Measuring Yield Assessing Risk 5 Important Relationships
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What is a bond?
Longterm debt instrument Borrower makes payments of
Solutions
CHAPTER 4
(Most solutions are rounded in the final answers, not in the intermediate computations.) 0 6% -500 1 2 FV = ? FV2 = $500(1.06) 2 = $500(1.1236) = $561.80
4-1
Using a financial calc
14. Your broker faxed the following information about bonds that you are considering as
potential investments. Unfortunately a fax machine is blurring some of the items. Fill in the
missing data from
Measures of Risk:
-Beta Coefficient
-Standard Deviation
Required return:
r(s)=r(f)+(r(m)-r(f)*beta
Current yield:
PMT/PV
Yield to maturity:
You are finding i
A=L+OE (Assets=Liability plus Owners Equit