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Practice test questions 1) What are the key advantages common to LLPs and LLC. 2) If a stock is paying $3.0 per year in dividends, and is expected to continue this indefinitely, with a required rate of return of 10% what is the value of the stock? 3)If you want to have $600,000 for retirement

Your favorite uncle, having saved and lived frugally throughout his career, has retired at the age of 60. His former employer’s pension plan has offered him the alternative of 1) receiving $478 per month until his death, or 2) receiving a lump sum distribution of $76,120. Lump sum payment under 2) would occur on the

You are buying your first house for $220,000. and are paying $30,000 as a down payment. You have arranged to finance the balance of $190,000 with a 30 year mortgage with a 8% nominal interest rate and monthly payments. What are the equal monthly payments you must make?

What is the PV of a 5-year annuity due (payments at beginning of period, aka annuity in advance) of $550 if the required return is 6.5%

What is the present value of a cash flow stream of $1,000.00 per year annually for 15 years that then grows at 4 percent per year forever when the discount rate is 13 percent?

I would like assistance in setting up these two problems so I can go ahead and solve them. There are no examples in my text. a) A potential client asks you how much he would need to invest today (lump sum) to assure a $35,000 annual supplemental 15-year annuity upon retirement in 20 years. The

Use the following information in answering Cases 1 and 2 below. On January 1, 2001, Carr Company sold $600,000 of 10% bonds, due January 1, 2011. Interest on these bonds is paid on July 1 and January 1 each year. According to the terms of the bond contract, Carr must establish a sinking fund for

*Appier Company reported net income of $40,000 for the year ended December 31, 2003. During the year, inventories decreased by $14,000, accounts payable decreased by $16,000, depreciation expense was $20,000 and a gain on disposal of equipment of $13,000 was recorded. Net cash provided by operations in 2003 using the indirect method was *If $4,000

1. Future Values. You deposit $1,000 in your bank account. If the bank pays 4 percent simple interest, how much will you accumulate in your account after 10 years? What if the bank pays compound interest? How much of your earnings will be interest on interest? 2. Calculating Interest Rate. Find the annual interest rate.

Herbert purchased a 10 year annuity for $96,000 late in 2008. The annuity will pay him $4,000 per month for ten years starting on Sept 1, 2008. How much of the $16,000 received this year will be taxable? A. 12,800 B. 16,000 C. 0 D. 3,200