1. Suppose a five year, $1000 bond with annual coupon has a price of $900 and yield to maturity of 6%. What is the bond's coupon rate?

2. Summit Systems will pay a dividend of $1.50 this year. If you expect Summit's dividend to row by 6% per year. What is its price per share if its equity cost of capital is 11%?

3. A huge number of successful businesses such as Apple, The Cheesecake Factory, and E-Bay were built around the personal passions of their founders. Consider your own personal passions. What do you love to do? What are you great at doing? Can you shape any of your interests into a business opportunity? Why or why not? Be sure to think big. If you love hanging out with friends and listening to music, a club promotion business might make sense for you. What steps would you need to take over the next few years to make your dream business real?

4. A public company is one whose shares are traded in a public market, such as a stock exchange; in a private company, ownership is private. The Sarbanes-Oxley Act does not apply to small, privately held companies. Do you think ethical accounting practices are equally important for both public and private companies? Should the government be involved in enforcing ethical practices for private companies?