Fall 2011
Finance 363
Second Mid-term
Form 2.1
Section 1 8 points each
Q1. If $8,218 is invested today in a savings account at an annual interest rate
compounded annually of 8.22%, the balance in the account 2 years hence will be:
A. $9,625
B. $9,655
C. $
Finance 363 Fall 2011 Mid-term 1
Form F
The following questions are worth 5 points each.
1. Current tax laws have which of the following effects?
a. Favor dividends because there are no capital gains taxes on dividends.
b. Do not favor capital gains becau
Finance 363 Fall 2011 Mid-term 1
Form B
The following questions are worth 5 points each.
1. Current tax laws have which of the following effects?
a. Favor dividends because there are no capital gains taxes on dividends.
b. Do not favor capital gains becau
Finance 363 Fall 2011 Mid-term 1
Form C
The following questions are worth 5 points each.
1. Which of the following events would make it more likely that a company would choose
to call its outstanding callable bonds?
a
.
b
.
c
.
d
.
e
.
a. A reduction in m
Finance 363 Fall 2011 Mid-term 1
Form D
The following questions are worth 5 points each.
1. Current tax laws have which of the following effects?
a. Favor dividends because there are no capital gains taxes on dividends.
b. Do not favor capital gains becau
Finance 363 Fall 2011 Mid-term 1
Form E
The following questions are worth 5 points each.
1. Which of the following events would make it more likely that a company would choose
to call its outstanding callable bonds?
a
.
b
.
c
.
d
.
e
.
a. A reduction in m
Fall 2011
Finance 363
Second Mid-term
Form 2.2
Section 1 8 points each
Q1. If $9,882 is invested today in a savings account at an annual interest rate
compounded annually of 9.88%, the balance in the account 6 years hence will be:
A. $16,292
B. $16,392
C.
Fall 2011
Finance 363
Second Mid-term
Form 2.3
Section 1 8 points each
Q1. If $9,245 is invested today in a savings account at an annual interest rate
compounded annually of 9.24%, the balance in the account 4 years hence will be:
A. $12,165
B. $12,665
C.
Fall 2011
Finance 363
Second Mid-term
Form 2.6
Section 1 8 points each
Q1. If $8,670 is invested today in a savings account at an annual interest rate
compounded annually of 8.67%, the balance in the account 3 years hence will be:
A. $9,996
B. $10,006
C.
Fall 2011
Finance 363
Second Mid-term
Form 2.4
Section 1 8 points each
Q1. If $9,498 is invested today in a savings account at an annual interest rate
compounded annually of 9.50%, the balance in the account 5 years hence will be:
A. $13,442
B. $13,952
C.
Finance 363 Fall 2011 Mid-term 1
Form A
The following questions are worth 5 points each.
1. Which of the following events would make it more likely that a company would choose
to call its outstanding callable bonds?
a
.
b
.
c
.
d
.
e
.
a. A reduction in m