Suppose you currently have $$2,000$ and plan to purchase a $3-$year certificate of deposit $($CD$)$ that pays $4\%$ interest compounded annually. How much will you have when the $CD$ matures?

How much would $$1,000,000$ due in $100$ years be worth today if the discount rate was $5\%?$

A company's sales in $2008$ were $$100$ million. If sales grow at $8\%,$ what will they be $10$ years later, in $2018?$

The U$.$S$.$ Treasury offers to sell you a bond for $$585\mathrm{.}43.$ No payments will be made until the bond matures $10$ years from now, at which time it will be redeemed for $$1,000.$ What interest rate would you earn if you bought this bond for $$585\mathrm{.}43?$

Your grandfather suggested that you get in the habit of saving early in life. You start putting aside $$1,825$ every year at the end of the year in an online brokerage mutual fund account that has a return of $8\%$ when you turn $18.$ If you continue saving in this way for the rest of your life, how much do you expect to have in your account when you turn $65?$

Assume that you are offered an annuity that pays $$100$ at the end of each year for $10$ years. You could earn $8\%$ on your money in other investments with equal risk. What is the most you should pay for the annuity?

Suppose you inherited $$100,000$ and invested it at $7\%$ per year. How much could you withdraw at the end of each of the next $10$ years?

You are considering a $10-$year, $$1,000$ par value bond. Its coupon rate is $9\%,$ and interest is paid semiannually. If market interest rate is $8\mathrm{.}16\%,$ what is the current price of the bond?

Halley Enterprises' bonds currently sell for $$975.$ They have a $7-$year maturity, an annual coupon of $$90,$ and a par value of $$1,000.$ What is their yield to maturity?

A company recently paid a dividend of $$2$ and is expected to grow at a constant rate of $6\%.$ The beta of its stock is $1\mathrm{.}2.$ Currently, the risk$-$free rate is $7\%$ and return on the market is $12\%.$

a$)$ Calculate the required rate of return, $r_s,$ of the stock.

b$)$ What is the stock's intrinsic value, $P_0?$

Ezzell Corporation issued perpetual preferred stock with a $10\%$ annual dividend. The stock currently yields $8\%,$ and its par value is $$100.$ What is the stock's value?

You were hired as a consultant to Quigley Company, whose target capital structure is $35\%$ debt, $10\%$ preferred, and $55\%$ common equity. The interest rate on new debt is $6\mathrm{.}50\%,$ the yield on the preferred is $6\mathrm{.}00\%,$ the cost of equity is $11\mathrm{.}25\%,$ and the tax rate is $40\%.$ What is Quigley's WACC?j