Question: Question 5 (5 marks) (SHOW ALL WORK) 1. You deposited $10,000 into a GIC 5 years ago. Your GIC is now valued at $12,500. What
Question 5 (5 marks) (SHOW ALL WORK) 1. You deposited $10,000 into a GIC 5 years ago. Your GIC is now valued at $12,500. What was your rate of return? 2. You want to buy a MacBook computer which costs $2,000 at Best Buy. Your grandmother gave you $800 for your twenty birthday. You want to invest this at 5% compounded annually and use the proceeds to buy the Mac. How long will it take for you to buy this computer? 3. What is the Present Value of the following cashflows at a 7% discount rate Yr 1 Yr2 Yr3 Yr4 $1,000-$1,000 1,000-$1,000 4. You just graduated from Yorkville University with your BBA. Because you were an honest student that never cheated on their mid term exams, you were able to find a good job that pays you $200,000 per year. You expect to have a 10% increase in your salary each year for the next twenty five years. What is the present value of your salary using a 3% discount rate? 5. Tata Steel has a book value of equity of $2 million, a market to book ratio of 2, and a book value per share of $5.00. What is the total market value of the firm's equity
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