11. How much is a dollar worth today if you can expect to receive it a year from now from an Insurance bank with no risk of default? a. $1.00 b. Not enough information given to tell c. Less than $1.00 d. More than $1.00 12. How much would you be willing to pay for an investment with an expected cash flow of $500 per year for the next 10 years if the assumed discount rate was 12 percent? Select one: a. $2635.14 b. $2825.11 c. $2710.45 d. $2582.11

13. How much would you be willing to pay for an investment with an expected cash flow of RM500 per year for the next 10 years if the assumed discount rate was 12 percent?. a. RM2710.45 b. RM2825.11 c. RM8,774.36 d. RM2635.14

14. If AA price is $40 per share and its current cash dividend of$3.85 per share is growing at a 7 percent rate per year, determine its required return? Select one: a. 16.2 % b. 17.3 % c. 16.6 % d. 15.1 %

15. Market that offers stock for the first time is known as _________. a. secondary market b. derivative market c. primary market d. stock market