You have deposited $5,000 in an account that pays 5% interest each year. How much will you

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You have deposited $5,000 in an account that pays 5% interest each year. How much will you have in the account at the end of six years?

2.A certain project will cost a firm $5,000 today. The project is not expected to produce any cash flows until the second year, at which point it is expected to produce $6,200. No other cash flows are anticipated. If the appropriate cost of capital is 15%, what is this project's NPV?

3.A certain project will cost $50,000 and is expected to produce cash flows of $15,563 for the next seven years. The appropriate cost of capital is 15%. Calculate the project's NPV?

4.A project returns 15% when the market returns 10% and 8% when the market returns 15%.

5.A zero-coupon bond has a beta of 0.15 and promises to pay $5,000 next year with a probability of 96%, $1,000 with a probability of 2%, and there is a 2% probability of total default. One-year Treasury securities are yielding 4%, and the expected return on the market is 10%.

What is the time premium for this bond investment?

6.A firm paid a dividend of $1.52 a share this year and had earnings per share of $5.42. It's market price per share is $69.10. What is its dividend yield?

7.Your project has a beta of 1.8. The risk-free rate is 5.3%, and the expected return on the market is 12%. What minimum rate of return should you require on this project?

8.The risk-free rate is 4.2%, and the expected return on the market is 10%. A publicly-traded bond promises to return 8%. The expected return on the bond investment is 5.5%. What is the bond's implied beta?

9.A firm has 1,000 shareholders. Both you and Ms. Hostile are among them. Ms. Hostile owns 150 shares and is trying to fire the management, so management is offering to buy her out for a $10 a share premium. The current market price per share is $30. What will be the value of each of your shares if Ms. Hostile takes this offer?

10.A firm has 1,000 shareholders, each of whom own $50 in shares. The firm uses $20,000 to repurchase shares. What percentage of the firm did each of the remaining shareholders own before the repurchase, and what percentage does each own now?