1. You are considering the purchase of stock A at the beginning of the year. The dividend at the end of the year is expected to be K3.50, and the market price by the end of the year is expected to be K45. If your required rate of return is 15%, at what price would you be willing to purchase the stock?

2. Stock A is currently selling for K50. The company is expected to pay a K3 cash dividend at the end of the year, and the stocks market price at the end of the year is expected to be K55 a share. Compute the expected return on this investment.

3. A bond represents a creditor relationship with the issuer. Explain why bonds issued by different firms will not necessarily have the same expected return.

4.Profit maximization is an erroneous objective for financial management. Using practical examples, critically evaluate this statement

5.What is the difference between coefficient of variation and variance?