16) What is the NPV of a project that costs $100,000 and returns $50,000 annually for 3 years if the opportunity cost ofcapital is 14%? A) $13,397.57 B) $16,081.60 C) $14,473.44 D) $33,748.58 17) Real rates of return are typically less than nominal rates of return due to: A) depreciation. C) dividend payments capital gains. D) 18) If the liquidation value of a corporation exceeds the market value of the equity, then the: A) firm has no value as a going concern. B) dividend payout ratio has been too high. C) firm's stock will sell for book value. D) firm is not taking advantage of available growth opportunities. 19) What is the approximate standard deviation of returns if over the past 4 years an investment returned 8%,-12%,-12%, and 15%? A) 12.01% B) 9.26% C) 11.26% D) 10.26% 20) What should be the current price of a stock if the expected dividend is $5, the stock has a required return of20%, and a constant dividend growth rate of 6%? A) $25.00 B) $19.23 C) $35.71 D) $37.86 21) Which one of these is considered to be the safest investment? A) U.S. Treasury bonds C) U.S. Treasury bill B) Preferred stock D) Common stock 22) If a project costs $72,000 and returns $18,500 per year for 5 years, what is its IRR? A) 7.67% B) 8.98% C) 8.50% D) 7.39% 23) Dani's just paid an annual dividend of S6 per share. What is the dividend expected to be in five years if the growth rate is 4.2%? A) S7.37 B) $7.14 C) $7.44 D) $7.07 24) What is the standard deviation of returns of a 4-stock portfolio (each stock being equally weighted) that produced returns of 20%, 20%, 25%, and 30%? A)2.15% B)3.15% C)5.15% D) 4.15% 25) What rate of return is expected from a stock that sells for $30 per share, pays $1.54 annually in dividends, and is expected to sell for $32.80 per share in one year? A) 14.28% B) 14.09% C) 14.47% D) 15.03%