Chapter 17 Shareholder value and the Cost of Capital
Questions from the required textbook at the end of Chapter 17
1. Equity in the Abby Group has a beta of 1.27. The market risk premium is 7%,
and the risk-free is 4%. Abbys last dividend was 50 per share

Chapter 6 Valuing Shares and Bonds
Questions from the required textbook at the end of Chapter 6
2. Issued bonds have a price of $91.77 and a coupon rate of 10% paid annually. The bonds
will mature in 6 years. What is the yield to maturity?
Assuming the fa

Chapter 5 Time Value of Money and Interest Rates I
Questions from the required textbook at the end of Chapter 5
1. For each of the following, compute the present value:
Future Value
$4 995
$4 782
$8 277
$14 305
Years
13
8
15
7
Interest Rate
4%
6%
7%
25%
P

Chapters 10 and 11 Risk and Return
Questions from the required textbook at the end of Chapter 10
3. Business shares have an initial price of $6.6 per share, paid a dividend of $0.396 per
share during the year, and had an ending price of $5.874 per share.

Chapter 5 Time Value of Money and Interest Rates II
Questions from the required textbook at the end of Chapter 5
3. Assume that the cost of a university education will be $80,000 when your
children enter university in 15 years time. You presently have $27