14. You have the opportunity to buy a perpetuity that pays $1,000 annually. Your required rate of return on this investment is 15 percent. You should be essentially indifferent to buying or not buying the investment if it were offered at a price of a. $5,000.00 b. $6,000.00 c. $6,666.67 d. $7,500.00 e. $8,728.50 15. South Penn Trucking is financing a new truck with a loan of $10,000 to be repaid in 5 annual end-of-year installments of $2,504.56. What annual interest rate is the company paying? a. b. . d. e. 7% 8% 9% 10% 11% 16. You just put $1,000 in a bank account that pays 6 percent nominal annual interest, compounded monthly. How much will you have in your account after 3 years? a. $1,006.00 b. $1,056.45 c. $1,180.32 d. $1,191.00 e. $1,196.68 17. Assume that you plan to buy a share of XYZ stock today and to hold it for 2 years. Your expectations are that you will not receive a dividend at the end of Year 1, but you will receive a dividend of $9.25 at the end of Year 2. In addition, you expect to sell the stock for $150 at the end of Year 2. If your expected rate of return is 16 percent, how much should you be willing to pay for this stock today? a. $164.19 b. $ 75.29 c. $107.53 d. $118.35 e. $131.74