# Question 7 question bank id 269385 type multiple

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QUESTION:7 [QUESTION BANK ID:269385] CORRECT What is the PV of an ordinary annuity with 5 payments of \$4,700 if the appropriate interest rate is 4.5%? TYPE:MULTIPLE CHOICE << HIDE ANSWERS A \$16,806 \$17,690 \$18,621 \$19,601 \$20,633B C D E
QUESTION:8 [QUESTION BANK ID:269555] TYPE:MULTIPLE CHOICE
CORRECT Ezzell Enterprises’ noncallable bonds currently sell for \$1,165. They have a 15-year maturity, an annual coupon of \$95, and a par value of \$1,000.  What is their yield to maturity? A << HIDE ANSWERS
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QUESTION:9 [QUESTION BANK ID:269581] CORRECT The Francis Company is expected to pay a dividend of D1 = \$1.25 per share at the end of the year, and that dividend is expected to grow at a constant rate of 6.00% per year in the future. The company's beta is 1.15, the market risk premium is 5.50%, and the risk-free rate is 4.00%. What is the company's current stock price? TYPE:MULTIPLE CHOICE << HIDE ANSWERS B
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C \$30.36 D \$31.12 E \$31.90 QUESTION:10 [QUESTION BANK ID:269571] CORRECT Stock A's stock has a beta of 1.30, and its required return is 12.00%. Stock B's beta is 0.80. If the risk- free rate is 4.75%, what is the required rate of return on B's stock? (Hint: First find the market risk premium). ATYPE:MULTIPLE CHOICE << HIDE ANSWERS
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QUESTION:11TYPE:MULTIPLE CHOICE
[QUESTION BANK ID:269533] CORRECT Bae Inc. has the following income statement. How much net operating profit after taxes (NOPAT) does the firm have? Sales\$2,000.00 Costs1,200.00 Depreciation100.00 EBIT\$ 700.00 Interest expense200.00 EBT\$500.00 Taxes (35%)175.00 Net income\$ 325.00 << HIDE ANSWERS A \$370.60 \$390.11 \$390.11 \$432.25 \$455.00 B C D E

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