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21 XYZ Corporation just issued a 7%, 30-year, semi-annual coupon bond and sold it at par value. If an investor purchased that bond, held it

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21 XYZ Corporation just issued a 7%, 30-year, semi-annual coupon bond and sold it at par value. If an investor purchased that bond, held it for 7 years, reinvested the coupons at an annual rate of 5%, and sold it after the 7-year holding period at its then prevailing yield to maturity of 9%, the investor would have earned a relaized compound yield equal to... Multiple Choice 7% O 4.71% a 9% cannot be determined O 9.42% 22 The High Flying Company just paid a dividend of $150 per share. The dividends are expected to grow at the rate of 20% per year for 3 years, then by 15% per year for 3 more years, before finally settling down to the industry average growth rate of 8.5%. If the risk-adjusted required rate of return on this stock is 16%, the stock's intrinsic value is: Multiple Choice $33.12 $35.00 $50 $16.90 There is a project with the following cash flows: 28 Year 0 2 3 4 Cash Flow -$24,450 7,100 8,200 7,150 7,750 6,700 5 What is the payback period? Multiple Choice 03.83 years 3.26 years 3.51 years Filter Corp, has a project available with the following cash flows: 25 Year 0 Cash Flow -$15,700 5,100 6,400 5,800 4,200 2 3 What is the project's IRR? Multiple Choice O 16.70% O 14.32% 15.91%

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