1) You plan to buy a car that has a total "drive-out" cost of $30,200. You will make a down payment of $3,322. The remainder of the car's cost will be financed over a period of 6 years. You will repay the loan by making equal monthly payments. Your quoted annual interest rate is 9% with monthly compounding of interest. (The first payment will be due one month after the purchase date.) What will your monthly payment be? Question 17 options: $480.88 $484.49 $499.30 $563.71 $451.40

2) You plan to retire 34 years from now. You expect that you will live 22 years after retiring. You want to have enough money upon reaching retirement age to withdraw $140,000 from the account at the beginning of each year you expect to live, and yet still have $2,500,000 left in the account at the time of your expected death (56 years from now). You plan to accumulate the retirement fund by making equal annual deposits at the end of each year for the next 34 years. You expect that you will be able to earn 12% per year on your deposits. However, you only expect to earn 7% per year on your investment after you retire since you will choose to place the money in less risky investments. What equal annual deposits must you make each year to reach your retirement goal?

	$5,776.69
	$5,157.75
	$4,309.19
	$3,847.49
	$6,523.84

3) Within Year, Inc. has bonds outstanding with a $1,000 par value and a maturity of 19 years. The bonds have an annual coupon rate of 15.0% with semi-annual coupon payments. You would expect a quoted annual return of 16.0% if you purchased these bonds. What are the bonds worth to you?

	$1,011.83
	$940.86
	$1,062.40
	$951.98
	$1,828.02

4)Again, Inc. bonds have a par value of $1,000, a 28 year maturity, and an annual coupon rate of 8.0% with annual coupon payments. The bonds are currently selling for $1,037. The bonds may be called in 3 years for 108.0% of par. What quoted annual rate of return do you expect to earn if you buy the bonds and company calls them when possible?

	7.45%
	7.68%
	9.87%
	8.98%
	6.11%

5) Timeless Corporation issued preferred stock with a par value of $900. The stock promised to pay an annual dividend equal to 9.0% of the par value. If the appropriate discount rate for this stock is 10.0%, what is the value of the stock?

	$810.00
	$1,000.00
	$920.20
	$665.01
	$683.64

6) You are considering buying common stock in Grow On, Inc. The firm yesterday paid a dividend of $4.40. You have projected that dividends will grow at a rate of 10.0% per year indefinitely. If you want an annual return of 21.0%, what is the most you should pay for the stock now?

	$44.00
	$40.00
	$20.95
	$23.05
	$48.07

7)

Growing, Inc. is a firm that is experiencing rapid growth. The firm yesterday paid a dividend of $3.80. You believe that dividends will grow at a rate of 21.0% per year for three years, and then at a rate of 9.0% per year thereafter. You expect that the stock will sell for $60.64 in three years. You expect an annual rate of return of 24.0% on this investment. If you plan to hold the stock indefinitely, what is the most you would pay for the stock now?

Question 23 options:

	$39.53
	$31.55
	$42.66
	$26.64
	$36.51

8)Costly Corporation plans a new issue of bonds with a par value of $1000, a maturity of 36 years, and an annual coupon rate of 11.0%. Flotation costs associated with a new debt issue would equal 8.0% of the market value of the bonds. Currently, the appropriate discount rate for bonds of firms similar to Costly is 9.0%. The firm's marginal tax rate is 30%. What will the firm's true cost of debt be for this new bond issue?

	8.37%
	9.83%
	11.96%
	6.88%
	13.43%