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3) A $120,000.00 investment will pay $34,883.50 year one, $43,604.37 year two, $34,883.50 year thr    [a] 6.25%    [b] 6.50% 1    [c] 6.75% 2    [d] 7.00% 3    [e] 7.25% 4 5 Hint: The necessary formula is IRR = the interest rate that discounts the cash flows equal the initial investment (NPV = 0) There is an example of calculating IRR the text student website chapter 9     8) Ponderosa Co. bonds sell for $846.04. The coupon rate is 8 percent and the bonds mature in 25 year    [a] 3.18 percent    [b] 4.99 percent 4    [c] 6.36 percent 2.64 this is the correct    [d] 9.34 percent    [e ] 9.64 percent        14) Jorge, Inc., has 200,000 shares of stock outstanding. The firm has an EBIT of $1 million and inte    [a] $0.20    [b] $1.65 EBIT    [c] $2.97 less:interest    [d] $3.30 Earnings after interest    [e] $5.00 Less:tax Net income shares outstanding 19) What is the present value of $1,969.88 to be received in 10 years if the discount rate is 4% per yea             http://wps.aw.com/aw_gitman_pmfbrief_4/0,10397,1970895-00.html
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   [a] $1,642.66    [b] $1,560.86 present value of 1969.88 to b    [c] $1,458.60    [d] $1,330.78    [e] $1,064.62    [a] $187.50    [b] $221.00 annuity value    [c] $248.00    [d] $269.50    [e] $286.50   This is an annuity 25) What is the annual rate of return on $7,000.00 invested for 4 years with an ending value of $18,7    [a] 1.75%    [b] 3.50%    [c] 7.00%
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This note was uploaded on 04/09/2010 for the course ACC 423 acc 423 taught by Professor Mr.youknowwho during the Spring '10 term at University of Phoenix.

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answer-7(1) -...

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