You are the financial planner for Johnson Controls. Assume last year's profits were $880,000. The...
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You are the financial planner for Johnson Controls. Assume last year's profits were $ The board of directors decided to forgo dividends to stockholders and retire highinterest outstanding bonds that were issued years ago at a face value of $ You have been asked to invest the profits in a bank. The board must know how much money you will need from the profits earned to retire the bonds in years. Bank A pays compounded quarterly, and Bank B pays compounded annually. Use Table and Table provided. Note: Do not round intermediate calculations. Round your answers to the nearest dollar amount. a Which bank would you recommend? Bank A Bank B a How much of the company's profit should be placed in the bank? Profit b If you recommended that the remaining money not be distributed to stockholders but be placed in Bank B how much would the remaining money be worth in years? Future Value 
You are the financial planner for Johnson Controls. Assume last year's profits were $ The board of directors decided to forgo
dividends to stockholders and retire highinterest outstanding bonds that were issued years ago at a face value of $ You
have been asked to invest the profits in a bank. The board must know how much money you will need from the profits earned to retire
the bonds in years. Bank A pays compounded quarterly, and Bank B pays compounded annually. Use Table and Table
provided.
Note: Do not round intermediate calculations. Round your answers to the nearest dollar amount.
a Which bank would you recommend?
Bank A
Bank B
a How much of the company's profit should be placed in the bank?
Profit
b If you recommended that the remaining money not be distributed to stockholders but be placed in Bank B how much would the
remaining money be worth in years?
Future Value
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