Computer Sciences Corporation provides software security systems for airports. It wants to have $85 million available in 5 years to pay stock dividends. How much money must the company set aside now in an account that earns interest at a rate of 14% per year, compounded quarterly, to the nearest dollar? What is the annual effective rate?

Computer Sciences Corporation provides software security systems for airports. It wants to have $85 million available in 5 years to pay stock dividends. How much money must the company set aside now in an account that earns interest at a rate of 14% per year, compounded quarterly, to the nearest dollar? What is the annual effective rate?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter17: The Management Of Cash And Marketable Securities

Section: Chapter Questions

Problem 1P

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