You would like to provide $125,000 a year forever for your heirs. How much money must you deposit today to fund this goal if you can earn a guaranteed 4.5 percent rate of return?

There is a zero coupon bond that sells for $429.62 and has a par value of $1,000. If the bond has 19 years to maturity, what is the yield to maturity? Assume semiannual compounding.

Fancy Cat Products has a project that will cost $254,000 today and will generate monthly cash flows of $5,460 for the next 65 months. What is the rate of return of this project when expressed as an APR?

You want to start a business that you believe can produce cash flows of $44,000, $61,000, and $80,000 at the end of each of the next three years, respectively. At the end of three years you think you can sell the business for $200,000. At a discount rate of 9.7 percent, what is this business worth today?

Maynard Enterprises paid $1,384 in dividends and $1,067 in interest over the past year. The common stock account increased by $1,272 and retained earnings decreased by $379. What was the company’s net income?

Your local pawn shop lends money at an annual rate of 24 percent compounded weekly. What is the effective annual rate being charged on these loans?

HUD Company had a beginning retained earnings of $29,630. For the year, the company had net income of $6,365 and paid dividends of $2,455. The company also issued $4,305 in new stock during the year. What is the ending retained earnings balance?

A bond with a par value of $5,000 is quoted at 102.088. What is the dollar price of the bond?

During the past year, a company had cash flow to stockholders, an operating cash flow, and net capital spending of $16,045, $38,440, and $17,460, respectively. The net working capital at the beginning of the year was $6,735 and it was $8,330 at the end of the year. What was the company’s cash flow to creditors during the year?

Grace is retiring today and has $300,000 in her retirement savings. She expects to earn 8.5 percent per year compounded monthly. How much can she withdraw from her retirement savings each month if she plans to spend her last penny 17 years from now?