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

View full document

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

View full document

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

View full document

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