Problem
I. You are a shareholder in a C corporation. The corporation earns $19 per share before taxes. Once it has paid taxes, it will distribute the rest of its earnings to you as a dividend. The corporate tax rate is 33%, and the personal tax rate on dividend income is 34%. How much is left for you after all taxes are paid? The amount that remains is $ per share.
II. You invest $1,000 in a project today. The project will generate a one-time cash flow of $2312 five years from now. If the interest rate is 3%, what is the Net Present Value of the project?
III. You are eligible for a 30-year fixed-rate home mortgage with an interest rate of 3.6% per year. If you can afford a monthly payment of $4077, what is the maximum mortgage loan you can get?
IV. What is the present value of $8,000 paid at the end of each of the next 23 years if the interest rate is 9% per year?
V. You bought a Tesla Model 3 for $36266 and the auto loan is 60-month fixed rate loan with interest rate of 2.4% per year. What is your monthly payment?