1. In a fully integrated imputation system, the after-tax income of a shareholder is affected by:

a) the after-tax income of the company and the dividend payout ratio

b) the amount of before-tax net income earned by the company paid out as dividends and the income tax paid by the company

c) the amount of after-tax net income earned by the company and paid out as dividends and the shareholders marginal tax rate

d) the amount of before-tax net income earned by the company and paid out as dividends and the shareholders marginal tax rate

2. The price of a new yacht is $40,000. You currently have $19,677 that you can invest in a bank account paying 12% per annum compounded quarterly. How long will it take you to buy the yacht?

a) 6 months

b) 6 years

c) 8 years

d) 24 months

3. You are going to pay $100 into an account at the end of each of the next 40 years. At the beginning of the 41st year you buy a 30-year annuity whose first payment comes at the end of the 41st year (the account pays 12%). How much will you receive at the end of the 41st year (i.e. the first annuity payment)? Round to the nearest $100.

a) $10,700

b) $9,500

c) $11,400

d) $7,800\

4. You are considering buying some shares in Continental Grain Ltd. Which of the following are examples of non-diversifiable risks? I. Risk resulting from a general decline in the stock market. II. Risk resulting from a possible increase in income taxes. III. Risk resulting from an explosion in a grain elevator owned by Continental. IV. Risk resulting from an impending lawsuit against Continental.

a) III and IV

b) II, III, and IV

c) I only

d) I and II

5. A $1,000 par value 10-year bond with a 10 percent coupon rate recently sold for $900. The yield to maturity:

a) is 10 percent

b) is less than 10 percent

c) is greater than 10 percent

d) cannot be determined

6. Which of the following is true regarding the use of the companys weighted average cost of capital (WACC) as the discount rate for new projects?

a) The risk of the project should resemble the risk of the overall company

b) The WACC should be based on book values of debt and equity

c) The cost of debt should always be after-tax and you should use market yields rather than the interest rate at which the debt was issued

d) In financing new projects the company intends to change its target capital structure

7. If the net present value (NPV) of a project is positive, the projects internal rate of return (IRR) __________________ the required rate of return.

a) could be greater or less than

b) must be greater than

c) must be less than

d) cannot be determined without actual cash flows

8. Compute the payback period for a project with the following cash flows, assuming that the companys discount rate is 12 percent. Initial Outlay = $450 Cash Flows: Year 1 = $325 Year 2 = $65 Year 3 = $100

a) 4 years

b) 3.13 years

) 2.17 years

d) 2.6 years

10. The break-even model enables the manager of the firm to:

a) set appropriate equilibrium thresholds

b) calculate the minimum price of ordinary shares for certain situations

c) determine the quantity of output that must be sold to cover all operating costs

d) determine the optimal amount of debt financing to use

Kindly give me answers for all the MCQ in A B C D

they all are MCQ. we only need to choose the right answer