KIC000196

KIC000196 - r Quiz#1 FIN 310 Corporate Finance Section B...

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r Quiz #1 FIN 310, Corporate Finance, Section B Please circle one of the possible answers (5 points each): 2. The common stock for Hunter Corp. currently sells for \$63. What dividend would the firm pay next year if the expected stock price will be \$69 on the date the dividend is paid and investors require a 12% return? . tA -\.9~ -r'i. r:;;.· \.03 a. \$1.59 ® \$1.56 c. \$1.47 d. \$1.95 ll:{,I'Z.):. u,-t')( y.:. I, 6l,p-lD -=- I,~ 1. You borrow \$149,000 to buy a house. The mortgage rate is 7.5% and the loan period is 30 years. Payments are made monthly. If you pay for the house according to the loan agreement, how much total interest will you pay? 1/,,;. 1.\$/,2 P =: \'1 Q ,OOO tv "" I '2. ')I 3:.:> F'r"rr;. I,D41.~3 \,Cl'tl.~,\~ ~=. 316, 05'bID - /'-I9,0CQ= 2'2.(o l o:A a. b. C2 \$138,086 \$218,161 \$226,059 \$287,086 \$375,059 e. 3. Richard has \$500.00 to invest, but he is willing to borrow money to increase the size of his investment. How much should Richard borrow to construct a portfolio

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This note was uploaded on 09/08/2011 for the course FIN 350 taught by Professor Borisova during the Spring '11 term at Iowa State.

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KIC000196 - r Quiz#1 FIN 310 Corporate Finance Section B...

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