1.The present value of GHIC115,000 expected to be received be Thomas, one year from today at an interest rate (discount rate) of 10% per year is:

A. GHC 104,545 B. GHC 110,000 C. GHC 100,500 D. GHC121,000

2. What is the net present value of the following cash Now at a discount rate of 15%?

t = 0	t = 1	t = 2
-120.000	-100.000	1300.000

A. GHC 26,300 B. GHC 80,000 C. None of the above D. GHC 19,887

3. Retained earnings refer to

A. The difference between the market price of the stock and the book value B. The amount of directly contributed equity capital in excess of par value C. The difference between the net income earned and the dividends paid during a year D. The amount of cash that the firm has saved up

4. You would like to have enough money saved to receive a GHC 100,000 per year perpetuity after retirement so that you and your family can lead a good life. How much would you need to save in your retirement fund to achieve this goal (assume that the perpetuity payments start one year from the date of your retirement. The interest rate is 10%)?

A. GHC 100,000 B. GHC 10,000,000 C. None of the above D. GHC 1,000,000

5. Which of the following is an example of liquidity ratios?

A. Times interest cared (TIE) B. Tobin's q C. Ouick ratio