How much did you borrow for your house if your monthly mortgage payment for a 30 year mortgage? at 6.65% APR is $1,600?

How much did you borrow for your house if your monthly mortgage payment for a 30 year mortgage? at 6.65% APR is $1,600?

. . $218,080

. . . $202,503

. . . $186,926

. . . $233,658

. . . $249,235

. . . $264,812

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Shady Rack Inc. has a bond outstanding with 9.75 percent coupon, paid semiannually, and 17 years to maturity. The market price of the bond is $1,042.43. Calculate the bond’s yield to maturity (YTM). Now, if due to changes in market conditions, the market required YTM suddenly increases by 2% from your calculated YTM, what will be the percent change in the market price of the bond??

. . . -17.09%

. . . -16.39%

. . . -17.76%

. . . -14.01%

. . . -15.66%

. . . -14.87%

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Sanaponic, Inc. will pay a dividend of $6 for each of the next 3 years, $8 for each of the years 4-7, and $10 for the years 8-10. Thereafter, starting in year 11, the company will pay a constant dividend of $5/year forever. If you require 12 percent rate of return on investments in this risk class, how?much is this stock worth to you?

. . $37.77

. . $34.54

. . $50.50

. . $45.68

. . $41.46

. . $55.99

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Your required rate of return is 15%. What is the net present value of a project with the following cash flows?

.

.	Year	. 0	. 1	. 2	. 3	. 4	. 5
.	Cash Flow	. -750	. 450	. 350	. 150	. 125	. -100

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. . . 26.33

	.		.	.	72.15
				.	15.56
.		.
			.	60.27
	.		.
				.	48.68
.		.
			.	37.37
	.		.
.		?
	Please use the following information for this ?BBandLeanthe hasfollowing two questions.
	identified two mutually?	exclusive projects with the following cash flows.	. 2			. 3			.
.	Year			. 0		. 1
															.	12,000.
	.	Cash Flow Project A	-52,000.00		.	18,000.00	.	17,000.00		.	15,000.00
		. Cash Flow Project B	-52,000.00		.	17,800.00 .	10,000.00		.	12,000.00		.	17,000.
	The company requires?	a 11.5% rate of return from projects of this risk.?What is the NPV of project
	A???
.		. . 5,972?.87
			. 417?.37
	.		.
				. 1,395?.64
.		.
			. 1,624?.90
	.		.
				. 5,180?.35
.		.
			. 972?.57
	.		.
.		?	What is the?IRR of project B?
.		. .
	12.06%
	.		.	.	12.94%
.		.	.	13.05%
	.		.	.	20.80%
.		.	.	13.90%
	.		.	.	14.68%
.		?
	At what discount rate? would you be indifferent between these two projects?
.		. .	3.1177%
	.		.	.	34.1306%
.		.	.	13.5250%

. . . 26.0812%

. . . 14.7386%

. . . 15.8950%

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A bond with a face value of $1,000 has annual coupon payments of $100. It was issued 10 years ago and has 7 years remaining to maturity. The current market price for the bond is $ 1,000. Which of the following is true: I. Its YTM is 10%. II. Bond’s coupon rate is 9.5%. III. The bond’s current? yield is 10%.

. . . I, II Only

. . . I, III Only

. . . I, II, and III

. . . III Only

. . . I Only

. . . II, III Only

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Riverhawk Corporation has a bond outstanding with a market price of $1,250.00. The bond has 10 years to maturity, pays interest semiannually, and has a yield to maturity of 9%. What is the bond’s? coupon rate?

. . . 13.61%

. . . 11.31%

. . . 9.77%

. . . 10.54%

. . . 12.08%

. . . 12.84%

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You purchased a stock for $20 per share. The most recent dividend was $2.50 and dividends are expected to grow at a rate? of 8% indefinitely. What is your required rate of return on the stock?

. . . 17.64%

. . . 21.50%

. . . 17.00%

. . . 18.38%

. . . 19.25%

. . . 20.27%

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Sales and profits of Growth Inc. are expected to grow at a rate of 25% per year for the next six years but the company will pay no dividends and reinvest all earnings. After that, the dividends will grow at a constant annual rate of 7%. At the end of year 7, the company plans to pay its first dividend of $4.00 per share. If the?required return is 16%, how much is the stock worth today?

. . . $22.80

. . . $15.96

. . . $20.52

. . . $25.08

. . . $18.24

. . . $13.68

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Apple Sink Inc. (ASI) just paid a dividend of $2.50 per share. Its dividends are expected to grow at 26% a year for the next two years, 24% a year for the years 3 and 4, 16% for year 5, and at a constant rate of 6% per year thereafter. What is the current market value of the ASI’s stock if companies in this risk class have a 16% required rate of return??

. . . $56.03

. . . $48.35

. . . $51.29

. . . $45.54

. . . $54.27

. . . $42.87

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The Retarded Company’s dividends are declining at an annual rate of 6 percent. The company just paid a dividend of $4 per share. You require a 16 percent rate of return. How much will you pay for? this stock?

. . . $13.85

. . . $19.20

. . . $17.09

. . . $15.33

. . . $12.57

. . . $21.78

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The dividend yield of a stock is 9 percent. If the market price of the stock is $18 per share and its dividends have been growing at a constant rate of 6%, what was the most recent dividend paid by the?company?

. . . $1.36

. . . $1.53

. . . $1.02

. . . $1.70

. . . $1.19

. . . $0.85

. ?

Last year, Jen and Berry Inc. had sales of $45,000, cost of goods sold (COGS) of 12,000, depreciation charge of $3,000 and selling, general and administrative (SG&A) cost of $10,000. The interest costs were $2,500. Twenty percent of SG&A costs are fixed costs. If its sales are expected to be $60,000? this year, what will be the estimated SG&A costs this year?

. . . $12,667

. . . $12,000

. . . $10,636

. . . $11,500

. . . $14,250

. . . $13,250

. ?

You require a risk premium of 3.5 percent on an investment in a company. The pure rate of interest in the market is 2.75 percent and the inflation premium is 3 percent. US Treasury bills are risk free. What should?be the yield of the US Treasury bills? Use multiplicative form.

. . . 5.58%

. . . 6.09%

. . . 5.06%

. . . 6.35%

. . . 5.32%

. . . 5.83%

. ?

Bonds X and Y are identical, including the risk class. The only difference between A and B is in the coupon payment as shown below.

.

	.					.	Bond X	.	Bond Y
	.	Face value		.	$1,000	.	$1,000
	.	Annual Coupon Payment			. $120		. $130
	.	Payment Frequency		. Semiannual	.	Annual
	.	Years to maturity			. 15		.	15
	.	Price			.	$919.43		.	?
	.
.			What is?the price of bond Y?
.	. .
.	$925.88
.	.	.	$940.92
.	.	.	$1,007.15
.	.	.	$956.95

. . . $973.44

. . . $989.75

. ?