13. An important feature of fully amortized loans is a The APR is lower b. The EAR is lower There is a level payment d. There is a future value 14. You want to borrow 20,000 to buy a new car. You will finance this amount over 5 years in a loan that has a quoted APR of 4.95% and requires monthly payments. What is your monthly payment? Closest to $377 a b. C d $384 $387 $390 15. You need to have 100,000 in 18 years for your daughter's education. You believe that you can eam an APR of 8% with monthly compounding What monthly payment do you need to make to meet your goal? a 208.30 b222.52 c26721 d 280 27 16. BM stock trades at $140 per share. Last year, IBM had EPS of $9.00 and paid dividends per share of $3.00. IBM dividends are expected to grow at a 5% rate forever. The expected rate of retum on IBM stock, according to the dividend growth model is closest to: a 5.85% b 7.15% C 7.25% d. 7.5% e 7.75% 17. The nominal rate of retum on a 2 year corporate loan is 6.5%. The inflation rate is expected to be 4% What is the real rate of return on the loan? Closest to: a 40% b 25% c24% d. 20% 18. ITT Corp has 50 million shares of preferred stock outstanding priced at $24 per share and carrying a $1.20 per share dividend. The tax rate is 10%. The return on the preferred stock is closest to a 50% 0.40% c 30% d. 25% 0.20%