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1) Your company is planning to borrow $3,000,000 on a 20-year, 6%, semi-annual payment, fully amortized term loan. What should be the payment of the
1) Your company is planning to borrow $3,000,000 on a 20-year, 6%, semi-annual payment, fully amortized term loan. What should be the payment of the last period? a. $129,787.45 b. $129,787.11 c. $129,787.24 d. $129,787.39 e. $129,787.58 2) If $500 is placed in an account that earns a nominal 8%, compounded quarterly, what is the future value after 10 years? a. $1,104.02 b. $1,105.23 c. $1,103.17 d. $1,106.82 e. $1,107.55 3)If you deposit $3,000 in a bank that pays 8% quarterly compounding, what is the rate of return if you withdraw after 8 months? Select one: a. 4.04% b. 4.00% c. 5.33% d. 4.08% e. 4.06% 4)Which of the following risk is the risk that you can get rid of by buying more stocks? a. idiosyncratic risk b. undiversifiable risk c. fundamental risk d. market risk e. systematic risk 5)Assume that ABC stock's expected rate of return is 11%, the beta of the stock is 1.2, and that the expected market return is 10 percent. What is the risk-free rate? a. 5.0% b. 5.5% c. 6.0% d. 6.5% e. 7.0% 1) Your company is planning to borrow $3,000,000 on a 20-year, 6%, semi-annual payment, fully amortized term loan. What should be the payment of the last period? a. $129,787.45 b. $129,787.11 c. $129,787.24 d. $129,787.39 e. $129,787.58 2) If $500 is placed in an account that earns a nominal 8%, compounded quarterly, what is the future value after 10 years? a. $1,104.02 b. $1,105.23 c. $1,103.17 d. $1,106.82 e. $1,107.55 3)If you deposit $3,000 in a bank that pays 8% quarterly compounding, what is the rate of return if you withdraw after 8 months? Select one: a. 4.04% b. 4.00% c. 5.33% d. 4.08% e. 4.06% 4)Which of the following risk is the risk that you can get rid of by buying more stocks? a. idiosyncratic risk b. undiversifiable risk c. fundamental risk d. market risk e. systematic risk 5)Assume that ABC stock's expected rate of return is 11%, the beta of the stock is 1.2, and that the expected market return is 10 percent. What is the risk-free rate? a. 5.0% b. 5.5% c. 6.0% d. 6.5% e. 7.0%
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