FINANCE FIN 515-Which of the following is/are an advantage(s) of incorporation

Access to capital markets
Limited liability
Unlimited life
All of the above

shareholder proposal
leveraged buyout
shareholder action
hostile takeover

the value of assets held per dollar of shareholder equity.
the return that the firm has earned on its past investments.
the firm's ability to sell a product for more than the cost of producing it.
how efficiently the firm is utilizing its assets to generate sales.

the Law of One Price.
the Present Value.
the Valuation Principle.
the Internal Rate of Return.

The bond certificate typically specifies that the coupons will be paid periodically until the maturity date of the bond.
The bond certificate indicates the amounts and dates of all payments to be made.
The only cash payments that the investor will receive from a zero coupon bond are the interest payments that are paid up until the maturity date.
Usually, the face value of a bond is repaid at maturity.

We should use the general dividend discount model to value the stock of a firm with rapid or changing growth.
As firms mature, their growth slows to rates more typical of established companies.
The dividend discount model values the stock based on a forecast of the future dividends paid to shareholders.
The simplest forecast for the firm’s future dividends states that they will grow at a constant rate, g, forever.

Question 1.1.(TCO B) If today you put $10,000 into an account paying 10% annually, how much will there be in the account after 5 years? Show your work. (Points : 20)

Question 2.2.(TCO B) You take out a 5-year car loan for $20,000. The loan has a 5% annual interest rate. The payments are made monthly. What are the monthly payments? Show your work. (Points : 20)

Question 3.3.(TCO D) A given bond has 5 years to maturity. It has a face value of $1,000. It has a YTM of 6% and the coupons are paid semiannually at a 10% annual rate. What does the bond currently sell for? Show your work. (Points : 20)

Question 4.4.(TCO D) A bond currently sells for $1,000 and has a par of $1,000. It was issued two years ago and had a maturity of 10 years. The coupon rate is 7% and the interest payments are made semiannually. What is its YTM? Show your work. (Points : 20)

Question 5.5.(TCO D) A stock has just paid a dividend and declared an annual dividend of $2.00 to be paid one year from today. The dividend is not expected to grow. The return on equity for similar stocks is 12%. What is P₀? Show your work. (Points : 20)

Question 6.6.(TCO D) A stock has just paid a dividend and has declared an annual dividend of $2.00 to be paid one year from today. The dividend is expected to grow at a 5% annual rate. The return on equity for similar stocks is 12%. What is P₀? Show your work. (Points : 20)