Signed a deal with Under Armour, where UA will pay Curry $4M every year, starting from 1/1/2023, for 5 years. In return, UA expects to make $2M, $5M, $10M, $20M and $30M profit from Curry's brand for the 5 years. Suppose the profits are earned on the first day of each year from 2024 to 2028. The discount rate is 10% per year. What was the NPV of this contract for Stephen Curry at the time of 1/1/2023?

HighTech Company is expected to retain all of its earnings forthe next two years but start to pay dividends 3 years from today.The first dividend is expected to be $3. Assume that the dividendswill grow rapidly at a rate of 10% per year during years 4 to 7.For each year after that it grows at a constant rate of 5%. Assumea discount rate of 12%.

1. What is HighTech’s stock price?
2. Assume that instead of growing at a 5% constant rate startingfrom year 8, HighTech Company expects, in year 8, to earn an EPS of$8 and reinvest $4 per share to develop new technology. The newtechnology will generate a 15% return permanently.

What is the constant growth startingfrom year 8?

What is the stock price today giventhis constant growth rate?

Michael is currently 23 years old and expects to earn a constant salary of $75,000 starting next year. He plans to retire at age 70 and expects to live until he turns 95. He wants to start saving for retirement. He will save 10% of his annual salary each year until he turns 35. Afterwards (ie starting with his 35th birthday and ending on his 70th birthday), his annual contributions will amount to 15% of his annual salary. He will then receive a pension of P every year starting with his 75th birthday and ending on his 95th birthday. The interest rate is 2% per year. Calculate the pension amount P that Michael will received based on his retirement contributions.

You expect to receive 1000 bucks every year at the end of each year, starting in year 7 and ending in year 21. If you expect the rate of return is 11.1 percent, and you invest all your cash flows at the going rate as soon as you receive them, how much money will you have at the end of year 25?