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 $23.45 million after taxes. Instead of immediately spending your money, you plan to deposit all of the money into an account that will earn 5.5 percent. If you make equal annual withdrawals for the next 40 years, how much can you withdraw each year starting exactly one year from now?

You are in talks to settle a potential lawsuit. The defendan…

You are in talks to settle a potential lawsuit. The defendant has offered to make annual payments of $26,000, $30,500, $62,000, and $93,000 to you each year over the next four years, respectively. All payments will be made at the end of the year. If the appropriate interest rate is 4.8 percent, what is the value of the settlement offer today?

The Bell Weather Company is a new firm in a rapidly growing…

The Bell Weather Company is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 21 percent a year for the next 4 years and then decreasing the growth rate to 5 percent per year. The company just paid its annual dividend in the amount of $2.80 per share. What is the current value of one share of this stock if the required rate of return is 8.30 percent?