0 multiple_choice_question 67220514
Suppose an investment will pay $11,000 in 23 years from now. If you can earn 15.75% interest compounded monthly by depositing your money in a bank, how much should you pay for the investment today?
0 multiple_choice_question 67221217
What is the effective annual interest of 10.00% APR compounding semi-annually?
0 multiple_choice_question 67220411
Wendy has $23,000.00 invested in a bank that pays 9.75% annually. How long will it take for her funds to triple?
0 multiple_choice_question 67220381
Everest Inc. is presently enjoying relatively high growth because of a surge in the demand for its new product. Management expects earnings and dividends to grow at a rate of 28% for the next 2 years, 19.35% in year 3 and 4 and after which competition will probably reduce the growth rate in earnings and dividends to constant growth rate of 6.00%. The company’s last dividend was $1.90, its beta is 1.75, the market risk premium is 8.05%, and the risk-free rate is 5.75%. What is the current price of the common stock?
0 multiple_choice_question 67220480
Sadik Inc.’s bonds currently sell for $1,168.40 and have a par value of $1000. They pay a $105.00 annual coupon and have a 12-year maturity, but they can be called in 8 years at $1,303.00. What is their yield to call (YTC)?
0 multiple_choice_question 67220991
Everrest Inc.’s stock has a 53% chance of producing a 14.25% return, a 25% chance of producing a 27.50% return, and a 22% chance of producing a –4.25% return. What is the firm’s expected rate of return?
0 multiple_choice_question 67220641
Consider the following information and then calculate the required rate of return for the Global Equity Fund, which includes 4 stocks in the portfolio. The market’s required rate of return is 9.00%, the risk-free rate is 4.55%, and the Fund’s assets are as follows:
|
Stock
|
Investment
|
Beta
|
|
A
|
$195,000
|
1.45
|
|
B
|
$315,000
|
0.85
|
|
C
|
$535,000
|
–0.45
|
|
D
|
$1,130,000
|
2.18
|
0 multiple_choice_question 67220894
You were analyzing a stock and came up with the following probability distribution of the stock returns. What is the coefficient of variation on the company’s stock?
| State of the Economy |
Probability of State Occurring
|
Stock’s Expected Return
|
| Boom |
31%
|
27%
|
| Normal |
47%
|
15%
|
| Recession |
22%
|
8%
|
0 multiple_choice_question 67220236
What’s the future value of $20,000 after 8 years if the appropriate interest rate is 5.75%, compounded annually?
0 multiple_choice_question 67221232
Your uncle is about to retire, and he wants to buy an annuity that will provide him with $7,000 of income a year for 21 years, with the first payment coming immediately. The going rate on such annuities is 5.25%. How much would it cost him to buy the annuity today?
0 multiple_choice_question 67220770
Ezzell Enterprises’ noncallable bonds currently sell for $1,176.75. They have a 5-year maturity, semi-annual coupon rate of 12.00%, and a par value of $1000. What is the bond’s capital gain or loss yield?
0 multiple_choice_question 67307166
A stock is expected to pay a dividend of $1.10 at the end of the year. The required rate of return is rs = 12.57%, and the expected constant growth rate is g = 3.0%. What is the stock’s current price?
"96% of our customers have reported a 90% and above score. You might want to place an order with us."
