Unit 2 Assessment Instructions
Demonstrate your understanding of financial concepts by completing the following problems. Where appropriate, show or explain your work. You may use Excel to work the problems. Note that the tables for Problems 2–5 are also available in the Financial Concepts 2 Assessment Tables document linked in the assessment resources.
Problem 1.Calculate the future value of $3,500, compounded annually for each of the following:
· 10 years at 7 percent.
· 15 years at 9 percent.
· 20 years at 5 percent.
Problem 2.Calculate the present value for each of the following:
Problem 2. Calculating Present Values 

Present Value 
Years 
Interest Rate 
Future Value 
5 
4% 
$15,250. 

8 
7% 
$30,550. 

12 
10% 
$850,400. 

20 
15% 
$525,125. 
Problem 3.Calculate the interest rate for each of the following:
Problem 3. Calculating Interest Rates 

Present Value 
Years 
Interest Rate 
Future Value 
$282. 
2 
$325. 

$607. 
6 
$891. 

$32,600. 
12 
$142,385. 

$57,435. 
22 
$463,200. 
Problem 4.Calculate the number of years in each of the following:
Problem 4. Calculating the Number of Periods 

Present Value 
Years 
Interest Rate 
Future Value 
$765. 
6% 
$1,385. 

$845. 
9% 
$4,752. 

$17,200. 
11% 
$432,664. 

$23,700. 
14% 
$182,529. 
Problem 5.Refer to the cash flows listed for the Kelly Company investment projects in the table below. The discount rate is 6 percent. Calculate the present value of these cash flows. What is the present value at:
· 12 percent?
· 17 percent?
Problem 5. Present Value and Multiple Cash Flows 

Year 
Cash Flow 
1 
$750. 
2 
$840. 
3 
$1,230. 
4 
$1,470. 
Problem 6.Value the bond Midcorp has issued, with the following characteristics:
· Par: $1,000.
· Time to maturity: 28 years.
· Coupon rate: 7.50 percent.
· Semiannual payments.
Calculate the price of this bond if the YTM is each of the following:
· 7.50 percent.
· 9 percent.
· 4 percent.
Problem 7. Calculate the bond yield in the following scenario: Two years ago, Walters Electronics Corporation issued 20year bonds at a coupon rate of 6.75 percent. The bonds make semiannual payments, and currently sell for 106 percent of par value. Calculate the YTM.
Problem 8.Calculate the stock value in the following scenario: The next dividend payment by RST, Incorporated will be $3.45 per share. The dividends are projected to sustain a 6.50 percent growth rate into the future. If RST stock currently sells for $67 per share, what is the required return?
Problem 9.Calculate the stock value in the following scenario: Nickels Corporation will pay a $3.10 per share dividend next year. The company plans to increase its dividend by 4.25 percent per year, indefinitely. How much will you pay for the company’s stock today if you require a 12 percent return on your investment?
Why Choose Us
Quality Papers
At Myhomeworkwriters.com, we always aim at 100% customer satisfaction. As such, we never compromise o the quality of our homework services. Our homework helpers ensure that they craft each paper carefully to match the requirements of the instruction form.
Professional Academic Writers
With Myhomeworkwriters.com, every student is guaranteed highquality, professionally written papers. We ensure that we hire individuals with high academic qualifications who can maintain our quality policy. These writers undergo further training to sharpen their writing skills, making them more competent in writing academic papers.
Affordable Prices
Our company maintains a fair pricing system for all academic writing services to ensure affordability. Our pricing system generates quotations based on the properties of individual papers.
OnTime delivery
My Homework Writers guarantees all students of swift delivery of papers. We understand that time is an essential factor in the academic world. Therefore, we ensure that we deliver the paper on or before the agreed date to give students ample time for reviewing.
100% Originality
Myhomeworkwriters.com maintains a zeroplagiarism policy in all papers. As such, My Homework Writers professional academic writers ensure that they use the students’ instructions to deliver plagiarismfree papers. We are very keen on avoiding any chance of similarities with previous papers.
Customer Support 24/7
Our customer support works around the clock to provide students with assistance or guidance at any time of the day. Students can always communicate with us through our live chat system or our email and receive instant responses. Feel free to contact us via the Chat window or support email: support@myhomeworkwriters.com.
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.