BUS5602Quiz01

BUS5602Quiz01 - USER HOME Message Board COURSE HOME :...

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USER HOME COURSE HOME COMMUNICATE STUDY RESOURCES LOGOUT Message Board : Chat Room : Class Roster : Email : Digital Drop Box :
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LUTHER SETZER Your test grade is 90 percent The professor has configured this test to allow students to review: Questions answered incorrectly. Questions answered correctly. Students answers. Correct answers. Question 1 - Multiple Choice ID: 4719389 - The correct answer has been circled. Question: You own a $60,000 portfolio which is invested in two stocks and a risk-free security. Your portfolio expected return is 9.35 percent and the beta is 1.23. Stock A has an expected return of 9 percent and a beta of 1.2. Stock B has an expected return of 12 percent and a beta of 1.8. The risk-free rate of return is 4 percent. What is the value of your investment in stock A? $18,000 $19,000 $21,000 $24,000 $27,000 Question 2 - Multiple Choice ID: 4719424 Correct Question: You are making a $25,000 investment and feel that a 12 percent rate of return is reasonable given the nature of the risks involved. You feel that you will receive at least $100 in the first year, $36,000 in the second year, and potentially could see a cash outflow of $5,000 in the third year. What is the net present value of this investment given your expectations? -$919.28 -$863.20 $229.37 $268.33 $708.09 Question 3 - Multiple Choice ID: 4719446 Correct Question: What is the depreciation in year 3 for some equipment costing $442,000 that is classified as 7-year property for MACRS purposes?
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$54,956.00 $55,205.80 $76,956.00 $77,305.80 $108,245.80 Question 4 - Multiple Choice ID: 4719405 Correct Question: Roswell Industries is planning a major expansion 5 years from today. In preparation for this, the company is setting aside $25,000 each quarter, starting today, for the next 5 years. How much money will the firm have when they are ready to expand if they can earn an average of 5.25 percent on their savings? $488,209 $499,087 $523,618 $567,539 $574,988 Question 5 - Multiple Choice ID: 4719409 Correct Question: The First Bank offers personal loans at 7.5 percent compounded quarterly. The Second Bank offers similar loans at 7.25 percent compounded monthly. Which one of the following statements is correct concerning these two banks? The First Bank loan has an effective rate of 7.67 percent
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BUS5602Quiz01 - USER HOME Message Board COURSE HOME :...

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