Suppose I have $ to invest today and an investment opportunity pays a continuous compound annual interest of %. How much money will I have after years?

A project produces a cash flow of $ in year one, $ in year two, and $ in year three. If the discount rate is %, what is the project’s present value?

An asset that pays $100 by the end of the second year is trading at $. What is the implied discount rate r by this asset price?

The ratios of the measures of the sides of a triangle is 9:7:3.  If the perimeter of the triangle is 266 inches, find the length of the shortest side.  Show all work. Enter only the numerical portion of the answer in the blank.  

Based on historical data, Target has a % expected annual return and % standard deviation while Berkshire Hathaway has a % expected return and a % standard deviation. Assume the correlation between the returns of these companies is %. What is the standard deviation of your portfolio if you split your money evenly between Target and Berkshire?

MF Corp has an ROE of % and a plowback ratio of %. If the coming year’s earnings are expected to be $ per share, at what price will the stock sell? Assume the market capitalization rate (i.e., cost of equity) is %.

If a portfolio has a beta of and its covariance with the market is , what is the market standard deviation?

Apple has a beta of and a correlation with the market of %. The market’s risk premium and Sharpe ratio are % and . What is the standard deviation of Apple?

You are evaluating a project that will cost $500,000, but is expected to produce cash flows of $125,000 per year for 10 years, with the first cash flow in one year. Your cost of capital is 11% and your company’s preferred payback period is three years or less. What is the payback period of this project?

Project CF0 CF1 CF2 CF3 NPV at 10% IRR(%) A -100 36 42 48 3.5 11.88 B -100 88 32 -4 3.44 13.15 C -50 60 -2 -1 2.14 15.01 D -50 100 -25 -25 1.46 0 E 100 -50 0 -90 -13.07 16.41   What projects are accepted if the company has a one-year payback rule policy?