Wicker Imports established a trust fund that provides $90,000 in scholarships each year for needy students

Wicker Imports established a trust fund that provides $90,000 in scholarships each year for needy students. The trust fund earns a fixed 6 percent rate of return. How much money did the firm contribute to the fund assuming that only the interest income is distributed?    A.  $1,150,000 B.  $1,200,000 C.  $1,333,333 D.  $1,500,000 E.  $1,600,000

83.	A preferred stock pays an annual dividend of $3.20. What is one share of this stock worth today if the rate of return is 11.75 percent?    A.  $23.48 B.  $25.00 C.  $27.23 D.  $33.80 E.  $35.55

84.

You would like to establish a trust fund that will provide $120,000 a year forever for your heirs. The trust fund is going to be invested very conservatively so the expected rate of return is only 5.75 percent. How much money must you deposit today to fund this gift for your heirs?    A.  $2,086,957 B.  $2,121,212 C.  $2,300,000 D.  $2,458,122 E.  $2,500,000

85.	You just paid $750,000 for an annuity that will pay you and your heirs $42,000 a year forever. What rate of return are you earning on this policy?    A.  4.85 percent B.  5.10 percent C.  5.35 percent D.  5.60 percent E.  5.85 percent