BFIN300 FINAL TEST QUESTIONS WITH CORRECT ANSWERS GRADED A+
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Course
BFIN300
Institution
BFIN300
BFIN300 FINAL TEST QUESTIONS WITH CORRECT ANSWERS GRADED A+
You are considering purchasing a bond issued by the Ariadne Company. The issue matures in 6.5 years, has a 3 5/8 coupon. You want to earn at least 3.30% and the most you'd be willing to pay for $10,000 face value would be closest to - An...
BFIN300 FINAL TEST QUESTIONS WITH
CORRECT ANSWERS GRADED A+
You are considering purchasing a bond issued by the Ariadne Company. The issue
matures in 6.5 years, has a 3 5/8 coupon. You want to earn at least 3.30% and the most
you'd be willing to pay for $10,000 face value would be closest to - Answer-$10339
Platypus Tours has an expected return of 16.8% and a beta of 1.7. The risk free rate is
2.8% and the market risk premium is 6.75%. According to the Capital Asset Pricing
Model, Platypus is - Answer-undervalued
Martynik Health Corp just announced a dividend for next year will be $2.10. The
dividend is expected to grow at 4% for the sustainable future and the expected return is
8.75%. The value of Martynik is closest to: - Answer-$44.21
PeoplePower Inc. has just paid an annual dividend of $1.65. You expect dividends to
grow at 10% for the next two years, then at a sustainable 5% after that. The expected
return on the stock is 8%. The per share value of PeoplePower is closest to: - Answer-
$63.30
You have $12,000 to invest today and anticipate you can add to this investment $400
per year for 15 years. You expect to earn 4%. The future value of this investment is
closest to: - Answer-$29620.76
You are evaluating two investment options with seven year lives. One option pays $540
every six months, the other pays $1080 annually. The option with the better value would
be: - Answer-$540 every six months
You are able to pay $160 a month for 5 years to buy a car. If the interest rate s 4.9%,
how much can you afford to borrow to buy a car? - Answer-$8449.13
You've been offered semi-annual payments of $250 for 5 years. The appropriate
discount rate is 7%. What is this worth to you today? - Answer-$2079.15
Jacob Pierce has invested $6000 in an account earning 6% compounded quarterly. The
value of the account at the end of 4 years is closest to: - Answer-$7613.91
The time value of money concept would be defined as: - Answer-the relationship
between a dollar to be received in the future and a dollar today.
An underlying assumption of the dividend growth model is that a stock is worth: -
Answer-the present value of the future income which it generates
The value of common stock today depends on: - Answer-the expected future dividends,
capital gains, and discount rate.
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