1. What would be the present value of $1000 received three years from today if the discount rate is 12%? a. $826.52 b. $711.78 c. $900 exactly d. $1,000 2. The goal of a corporation is best described as: a. Maximizing gross profit b. Maximizing profit C. Maximizing directors' salaries d. Maximizing equity stockholder wealth 3. What is the YTM of a bond with a par value of $1,000, selling currently for $800 if the bond pays $74.20 in annual coupon and has 15 years left to maturity? a. 10.06% b. Between 8-9% C. 11.23% d. 13.76% 4. Shrek, Inc., just paid a dividend of $4.00. The company expects to have a supernormal year and grow at 10% over the next year. After that, the company will have constant growth rate of 5% forever. The cost of equity capital for the company is 9%. What is the company's current stock price based on the above data? a. $120 b. $110 C. $100 d. $87.52