Question
1-Courtney invests $1,200 today. If she can earn a 13.25% rate of return for the next two years, how much money will she have at
1-Courtney invests $1,200 today. If she can earn a 13.25% rate of return for the next two years, how much money will she have at the end of the two years?
Select one:
a.$1,742.99
b.$1,232.01
c.$1,203.18
d.$1,539.07
e.$1,359.00
2-What is the market value of a bond that will pay a total of 40 semi-annual coupons of $50 each over the remainder of its life? Assume the bond has a $1,000 face value and an 8% yield to maturity.
Select one:
a.$1,135.90
b.$1,197.93
c.$1,215.62
d.$634.86
e.$642.26
3-Sedge Inc. has a 12% required rate of return. It does not expect to pay dividends for seven years. At the beginning of year 8, it will pay $2.00 per share dividend. At that time, Sedge Inc. expects its dividend to grow at 7% forever. Calculate the stock price now.
Select one:
a.$40.00
b.$35.71
c.$24.62
d.$18.09
e.$31.88
4-Opportunity costs should be included in the analysis of a project.
Select one:
a.True
b.False
-Just the correct answers(Letters), without any explanation at all, please!
-Just answer please if you are 100% sure about the answers; many thanks!
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