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Author Question: You deposit 5,000 per year at the end of each of the next 25 years into an account that pays 8 ... (Read 45 times)

jparksx

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on: Jul 11, 2018
You deposit 5,000 per year at the end of each of the next 25 years into an account that pays 8
  compounded annually.
 
  How much could you withdraw at the end of each of the 20 years following
  your last deposit if all withdrawals are the same dollar amount? (The twenty-fifth and last deposit
  is made at the beginning of the 20-year period. The first withdrawal is made at the end of the first
  year in the 20-year period.)
  A) 18,276 B) 27,832 C) 43,289 D) 37,230

Question 2

Which of the following statements is TRUE?
 
  A) Issuing equity automatically hurts existing shareholders.
  B) Equity is less expensive than debt because of the dividend tax shield found with equity.
  C) If a firm takes on a positive NPV project financed with new equity, existing shareholders will benefit.
  D) All of the above are true.


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soda0602

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Reply #1 on: Jul 11, 2018
Answer to Question 1

D

Answer to Question 2

C


jparksx

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Reply #2 on: Jul 11, 2018
Correct answers!


soda0602

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Reply #3 on: Jul 11, 2018
Great! Please up vote :D


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