Murchison preferred stock pays an annual dividend of $4.45. What is the current price of this stock at a discount rate of 12.5 percent?

You want to have$2.15 million when you retire in 36 years. You feel that you can save $405 per month until you retire. What APR do you have to earn in order to achieve your goal?

Crystal Glass recently paid $3.60 as an annual dividend. Future dividends are projected at $3.80, $4.10, and $4.25 over the next three years, respectively. Beginning four years from now, the dividend is expected to increase by 3.25 percent annually. What is one share of this stock worth today at a discount rate of 12.5 percent?

Jacob invested $2,550 in an account that pays 5 percent simple interest. How much money will he have at the end of four years?

Werden’s Workshop invested $225,000 today to help fund future projects. How much additional money will the firm have three years from now if it can earn an annual interest rate of 4 percent rather than 3.5 percent? (Assume annual compounding.)

When a country is on the downward-sloping side of the Laffer curves, a cut in the tax rate will

Suppose John’s cost for performing some carpentry work is $120. If John is paid $200 for the carpentry work, what is his producer surplus?

If John’s willingness to pay for a good is $20 and the price of the good is $15, how much is John’s consumer surplus from purchasing the good?

Figure 7-1 Refer to Figure 7-1. When the price is P1, consumer surplus is

John has been in the habit of mowing Willa’s lawn each week for $20. John’s opportunity cost is $15, and Willa would be willing to pay $25 to have her lawn mowed. What is the maximum tax the government can impose on lawn mowing without discouraging John and Willa from continuing their mutually beneficial arrangement?