1. A sequence of cash flows is described by the following relationship: 1000 + 100k, where k is expressed in years. The sequence extends from the first to the eleventh year. The interest rate is 10% per annum.

a) The value of G at period 1 is ?

b) amount of fourth year cash flow is ?

c) The present value of the cash flow is ?

2. You have the option of choosing one of the following two investments: a) Its return is 7.8% compounded monthly or b) Its return is 8% compounded semi-annually. Which of the two options is the most advantageous? a ? b? both are equivalent?

3. When the company (a business) uses the sale of shares to raise capital, this method of financing is known as equity financing. true or false?