1. How much do you have to deposit today so that beginning 11 years from now you can withdraw $15,000 a year for the next 7 years (years 11 to 17) plus an additional amount of $30,000 in the last year (year 17)? Assume an interest rate of 9%
2. In October 2007, H.J. Heinz Co. (HNZ) had a share price of $46.78, 319.1 million shares outstanding, a market-to-book ratio of 8.00, a book debt-equity ratio of 2.62, and cash of $576 million. 1. What was Heinz’s market capitalization? 2. What was its enterprise value?
3. Currently terms of a payday loan involve a monthly fee equal to 2.75% of the amount borrowed. What is the effective annual rate for such a loan?