Corporate Finance for Managers

Running head: CORPORATE FINANCE FOR MANAGERS
Corporate Finance for Managers
Name of the Student:
Name of the University:
Author’s Note:

CORPORATE FINANCE FOR MANAGERS1
Table of Contents
Question 1........................................................................................................................................2
Question 2........................................................................................................................................3
Question 3........................................................................................................................................3
Question 4........................................................................................................................................4
Question 5........................................................................................................................................4
Question 6........................................................................................................................................5
Question 7........................................................................................................................................6
Question 8........................................................................................................................................6
Question 9........................................................................................................................................7
Appendix..........................................................................................................................................8
1) Bond Valuation........................................................................................................................8

CORPORATE FINANCE FOR MANAGERS2
Question 1
The amount that would be available at the end of 32 years of age would be calculated
with the help of the initial amount invested at the specified rate of interest rate level for the
company that would be primarily in the two stages where the interest rate at the first stage would
be taken at 6.5% p.a compounded semi-annually. On the other hand, in the second stage of
investment the interest rate that would be taken into consideration would be around 3%. The
amount derived after the first age of investment in the 18-years of time frame will be around
$1,581.29, which is calculated as follows:
First Phase of Investment
Initial Investment 500
Interest Rate 6.50%
Compounding
Period Semi-Annually
Time Period (In
Years) 18
Formula
=FV(B3/2,B5*2,0,-
B2,0)
Future Value $1,581.29
In the second phase of investment where the interest rate would be around 3% on an annual basis
the future value of the sum of investment would be around $2391.85.
Second Phase of Investment
Amount After 18
Years $1,581.29
Interest Rate 3.00%
Compounding
Period Annually
Time Period (In
Years) 14
Formula
=FV(B10,B12,0,-
B9,0)
Total Future $2,391.85