1. A firm just earned $4 in EPS. The ROE is 8% and the retention ratio is 40%. If the firm market cap rate is 15%, what is the PVGO?

1. -$6.53
2. $-5.68
3. $20.99
4. $26.67

2. What is the quoted price of a bond that matures in exactly 6 years, has a coupon rate of 5% and a YTM of 7%? Assume the issuer just made a coupon payment.

1. 90.34
2. 685.42
3. 90.57
4. 903.37

3. Today is May 1, 2015. A bond matures on September 15, 2020, has a coupon rate of 5%, YTM is 6%, and a quoted price of 95.458. What is the invoice price of this bond? (Hint: 184 days between payments, 47 days since last payments)

1. 95.514
2. 96.097
3. 94.612
4. 96.677