You just received a $5,000 gift from your grandmother which…

You just received a $5,000 gift from your grandmother which you have decided to save and then gift to your own grandchildren 50 years from now. How much additional money will you gift if you earn 7.5 percent interest rather than 7 percent interest over the next 50 years? (Assume annual compounding.)

You have just won the lottery and will receive a lump sum pa…

You have just won the lottery and will receive a lump sum payment of $22.53 million after taxes. Instead of immediately spending your money, you plan to deposit all of the money into an account that will earn 4.81 percent. If you make equal annual withdrawals for the next 25 years, how much can you withdraw each year starting exactly one year from now?

Allouette has earnings per share of $1.36. The firm’s earnin…

Allouette has earnings per share of $1.36. The firm’s earnings have been increasing at an average rate of 2.9 percent annually and are expected to continue doing so. The firm has 21,500 shares of stock outstanding at a price per share of $23.40. What is the firm’s PEG ratio?

Citrus Support is a young start-up company that is currently…

Citrus Support is a young start-up company that is currently retaining all of its earnings. The company plans to pay a $2 per share dividend in Year 7 and increase that dividend by 2.2 percent per year thereafter. What is the current share price if the required return is 16 percent?