Answers to Seminar Questions from Week 8 Lecture
Question 1
Suppose a stock had an initial price of $64 per share, paid a dividend of $1.75 per share during the
year, and had an ending share price of $72. Compute the percentage total return. What was the

Answers for Seminar Questions from Week 2 Lecture
Question 1
What happens to the future value of annuity if you increase the rate r? What happens to the present
value?
Assuming positive cash flows, the present value will fall and the future value will ris

Answers for Seminar Questions from Week 4-5 Lecture
Question 1
The Robb Computer Corporation is trying to choose between the following two mutually exclusive
design projects:
Year
0
1
2
3
CF Project I
-30000
15000
15000
15000
CF Project II
-5000
2800
2800