1) Seven years ago, Racheal bought Target Corporation (TGT) stock for $91.16, and TGT stock paid a one-time special dividend of $8.75 in year three. It has compounded monthly at 6.31% over the entire period. Based on this information, the current share price of TGT is closest to

A. $150.62.

B. $152.88.

C. $155.21.

D. $157.58.

2) Medtronic plc (MDT) recently issued a 30-year, 7.65% quarterly coupon bond selling for $1,250.85 can be called in 20 years for $1,415.20. In this case, MDT will raise money by selling new issuing bonds, and investors earn the bonds yield-to-call (YTC), which is lower than its yield-to-maturity (YTM).

Select one:

True

False

3) Tyson Foods, Inc. (TSN) is considering the purchase of a chicken processing machine that costs $48,850. Assume a required rate of return of 3.47% and the following cash flow schedule:

• Year 1: $17,415
• Year 2: $22,505
• Year 3: $19,485
• Year 4: $20,850

The projects discounted payback period (DPP) is closest to:

A. 2.31 years.

B. 2.42 years.

C. 2.54 years.

D. 2.63 years.