Question
1.What is the future value of $2,000 after 3 years if the interest rate is 8%, compounded semiannually? Select one: a. $2,854.13 b. 2,781.45 c.
1.What is the future value of $2,000 after 3 years if the interest rate is 8%, compounded semiannually? Select one: a. $2,854.13 b. 2,781.45 c. $2,324.89 d. $2,530.64$ 2. Bilsl borrowed $100,000 today that he must repay in 10 annual end-of-year installments of $14,902. What annual interest rate is Bill paying on his loan? a.8.0% b. 7.5% c. 4.9% d. 5.4% 3.ABC Company has $100 million in total assets and its corporate tax rate is 40%. The company recently reported that its basic earning power ratio (EBIT/Total Asset) was 15% and its return on assets (Net Income/ Total Assets) was 9%. What was the companys interest expense? a. $15,000,000 b. $ 0 c. $2,000,000 d. $ 6,000,000 4.Marry has $500,000 and wants to retire. He expects to live for another 20 years, and to be able to earn 8% on his invested funds. How much could he withdraw at the end of each of the next 20 years? a. $53,431.83 b. $50,926.10 c. $55,119.76 d. $54,764.40 5.How much would you pay for a stock that is expected to make a $1.50 dividend in one year if the expected dividend growth rate is 3% and you required a 16% return on your investment? Select one: a. $12.43 b. $11.54 c. $13.40 d. $12.33
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