Do not open until instructed to do so!Principles of Finance- Fall 2010Exam 3 – Security Analysis and ValuationPRINT your name__________________________________________SIGN your name ___________________________________________Print and sign your name on both the scantron and the exam right now. Signing your name reaffirms yourcommitment to the University Honor Code which, by the way, is “On my honor, as a student, I have neithergiven nor received unauthorized aid on this academic work.” We will collect this top sheet when you turnin your exam.Your version number is 2. Your answer sheet number is 1. Please enter these on the SCANTRON now.Please mark each answer on the scantron in pencil. Use the space by the problem for calculations; no otherpaper. Do not detach pages. For both the problems and concept questions, there is one BEST answer;please choose that one. There are multiple versions of the exam, but all are equally easy. Good luck!(29+=NrFVPV11PV of Perpetuity =rPMT1100xEEPP=Ann. due adj. = (1 + r)(29+-=NArrrPMTPV111grDPo-=1E(ri)= Rf+ [E(Rm) - Rf]βIgPDRO+=1PPPPDR=1D=0D* (1+g)TYYMUNITAX-=1NrPVFV)1(+=)1(SEMIYTMEAY+=2-111-=NPVFVR