2) Mr. Brook invested $15,000 in Amazon stock on 4/1/2019. He sold the stock on 12/1/2019. What was hisannualizedrate of return over the eight-month period? (Convert the months into fraction of a year)

Select one:

a.-1.5%

b.4.61%

c.2.5%

d.-2.74%

e.2.74%(wrong)

3) Ten years ago, Lucas Inc. earned $0.50 per share. Its earnings this year were $3.60. What was the growth rate in earnings per share (EPS) over the 10-year period?

Select one:

a.18.99%

b.23.35%(wrong)

c.21.82%

d.19.64%

e.24.44%

13) Last year Thomson Inc's earnings per share were $3.50, and its growth rate during the prior 5 years was 10.2% per year. If that growth rate were maintained, how many years would it take for Thomson's EPS totriple?

Select one:

a.9.73

b.9.16

c.11.31

d.8.82

e.13.91(wrong)

14) Which of the following statements is CORRECT?

Select one:

a.A time line is not meaningful unless all cash flows occur annually.(wrong)

b.Time lines are useful for visualizing complex problems prior to doing actual calculations.

c.Time lines cannot be constructed in situations where some of the cash flows occur annually but others occur quarterly.

d.Time lines cannot be constructed for annuities where the payments occur at the beginning of the periods.

e.Some of the cash flows shown on a time line can be in the form of annuity payments, but none can be uneven amounts.

15) You plan to invest in securities that pay 11.6%, compounded annually. If you invest $5,000 today, how many years will it take for your investment to grow to $9,140.20?

Select one:

a.6.10

b.4.73

c.6.43

d.4.18(wrong)

e.5.50

17) You plan to analyze the value of a potential investment by calculating the sum of the present values of its expected cash flows. Which of the following wouldlowerthe calculated value of the investment?

Select one:

The discount rate decreases.(wrong)

The discount rateincreases.

The riskiness of the investment's cash flowsdecreases.

The total amount of cash flows remains the same, but more of the cash flows are received in the earlier years and less are received in the later years.

19) Janice has $5,000 invested in a bank that pays 11.0% annually. How long will it take for her funds totriple?

Select one:

a.10.32 years

b.10.53 years

c.9.68 years

d.10.11 years(wrong)

e.10.42 years

22) Mr. Smith invested $1500 in Amazon stock when the company went IPO in May 1997. He didn't add money nor sell any share since then. What was his annualized rate of return over 5/1/1997- 2/1/2020 ? (He has held the stock for 22.75 years)

Select one:

a.35.62%

b.37.32%

c.32.33%(wrong)

d.40.0%