Your father’s employer was just acquired, and he was given a severance payment of $365,000, which…

Your father’s employer was just acquired, and he was given a severance
payment of $365,000, which he invested at a 7.596 annual rate. He now
plans to retire, and he wants to withdraw $35,000 at the end of each
year, starting at the end of this year. How many years will it take to
exhaust his funds, i.e., run the account down to zero?

O a 21.07 years

O
b. 13.33 years

O c. 32.42 years

O d. 10.43 years

o e. 17.98 years

Byrd Lumber has 2 million shares of common stock outstanding that sell
for $17 a share. If the company has $8 million of common equity on its
balance sheet, what is the company’s Market Value Added (MVA)? Answer
options are provided in whole dollar.

a. $26,000,000

b. $42,000,000

c.$1,000,000

d. $34,000,000

e. $9,000,000

Pace Co. borrowed $20,000 at a rate of 6.25%, simple interest, with
interest paid at the end of each month. The bank uses a 360-day year.
How much interest would Pace have to pay in a 30-day month?

a. 104.17

b. $208.33

c. $416.67

d. $625.00

e. $312.50

A bond issued by the State of Pennsylvania provides a 5-75% yield. What
yield on a Synthetic Chemical Company bond would cause the two bonds to
provide the same after-tax rate of return to an investor in the 35.00%
tax bracket? (Round your final answer to two decimal places.)

a. 16.4396

b. 8.85%

c. 7.76%

d. 4.26%

e. 3.7496