1.Determine the present value of RM1, 500 to be received at the end of 10 years if the compound rate of interest is 9 percent.

1. RM674.00
2. RM633.62
3. RM710.25
4. RM583.12

2. A share of preferred stock is

1. A legal claim of ownership
2. A marketable security
3. A debt security
4. Both A and B

3. 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?

1. Less than $1.00
2. $1.00
3. More than $1.00
4. Not enough information given to tell

4. What is the purpose of financial intermediaries?

1. Financial intermediaries allow for indirect investment in the capital markets by household
2. Aid in the flow of funds through the economy
3. Help provide allocation of funds to the best investments
4. All of the above.

5. The stock of the Wood Corporation has a required return of 16 percent. Woods current price is Rm55 and it current dividend per share is RM1.80. Determine Woods divided growth rate.

A. 10.65 percent

B. 11.11 percent

C. 12.81 percent

D. 13.75 percent