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? Edit this QuestionDelete this Question0 multiple_choice_question 67221217What is the effective annual interest of 10.00% APR compounding semi-annually? Edit this QuestionDelete this Question0 multiple_choice_question 67220411Wendy has $23,000.00 invested in a bank that pays 9.75% annually. How long will it take for her funds to triple? Edit this QuestionDelete this Question0 multiple_choice_question 67220381Everest 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? Edit this QuestionDelete this Question0 multiple_choice_question 67220480Sadik 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)? Edit this QuestionDelete this Question0 multiple_choice_question 67220991Everrest 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? Edit this QuestionDelete this Question0 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: StockInvestmentBetaA $195,0001.45B$315,0000.85C $535,000–0.45D$1,130,0002.18 .Edit this QuestionDelete this Question0 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 EconomyProbability of State OccurringStock’s Expected ReturnBoom31%27%Normal47%15%Recession22%8% Edit this QuestionDelete this Question0 multiple_choice_question 67220236What’s the future value of $20,000 after 8 years if the appropriate interest rate is 5.75%, compounded annually? Edit this QuestionDelete this Question0 multiple_choice_question 67221232Your 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? Edit this QuestionDelete this Question0 multiple_choice_question 67220770Ezzell 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? Edit this QuestionDelete this Question0 multiple_choice_question 67307166A 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?
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