1. ABC firm sells 8,000 units for 400-day period of business, the ordering costs are $80, and the carrying costs are $2 per unit. The company desires to maintain a safety stock of 400 units and three days are required for delivery. What is the economic order quantity?

A. 600 units

B. 700 units

C. 800 units

D. 900 units

2. If you decide to buy a new laptop today for $1,500 with a new personal loan, put $200 down, and finance the balance over the next 36 months at an interest rate of 6%. What will be the size of your monthly personal loan payment?

A. $15.67

B. $26.33

C. $31.75

D. $39.55

3. What is the current price of a 5-year bond with a face value of $1000 and a coupon rate of 5%? Assume the current interest rate is 10%.

A. $810.46

B. $864.55

C. $891.41

D. $913.41

4. In order to get your desired training for your dream job of being a financial analyst, you decide to pursue a one-year master degree in finance, which costs you $50,000 a year for the tuition, while you have to give up the job offer youve got as a human resource specialist, for which you can earn $45,000 a year. In this situation, what is your opportunity cost of pursuing the master degree of finance?

A. $5,000

B. $50,000

C. $45,000

D. $95,000

5. Bob is interested in buying a particular stock whose current dividend is $0.80, and is expected to increase at a rate of 8% per year forever. What should the stock be worth today if the required rate of return is 10%.

A. $39.60

B. $41.20

C. $43.20

D. $45.60