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e Co. preferred stock is selling for $65. It pays a dividend of $ per year and has a perpetual life. The rate of return it is offering its investors is closest to:A. %.B. %.C. %.19. If $10,000 is borrowed at 10% interest to be paid back over ten years, how much of the second year’s payment is interest (assume annual loan payments)?A. $.B. $.C. $1,.20. What is the effective annual rate for a credit card that charges 18% pounded monthly?A. %.B. %.C. %.分析題1. The Parks plan to take three cruises, one each year. They will take their first cruise 9 years from today, the second cruise one year after that, and the third cruise 11 years from today. The type of cruise they will take currently costs $5,000, but they expect inflation will increase this cost by % per year on average. They will contribute to an account to save for these cruises that will earn 8% per year. What equal contributions must they make today and every year until their first cruise (ten contributions) in order to have saved enough for all three cruises at that time? They pay for cruises when taken.2. Apany’s dividend in 1995 was $. Over the next eight years, the dividends were $, $, $, $, $, $, $, $. Calculate the annually pounded growth rate of the dividend over the whole period.3. An investment (a bond) will pay $1,500 at the end of each year for 25 years and on the date of the last payment will also make a separate payment of $40,000. If your required rate of return on this investment is 4%, how much would you be willing to pay for the bond today?4. Abank quotes certificate of deposit (CD) yields both as annual percentage rates (APR) without pounding and as annual percentage yields (APY) that include the effects of monthly pounding. A$100,000 CDwill pay $110, at the end of the year. Calculate the A