27 A mortgage loan is taken out for the amount of $250,000. It is a conventional mortgage loan, thirty years, monthly payments. Then mortgage interest rate in 6.49%. Calculate the monthly payment a. 1,194.49 b. 1,357.37 c. 1,578.53 d. 1,604.33 28 Microsoft's stock has a beta of 1.25 . The risk free rate is 2.45%, and the expected rate on stocks is 11%. What is the required return for Microsoft using CAPM. a. 13.14% b. 14.25% c. 15.35% d. 16.39% 29 A bond with a $1,000 par value has an 7.35% coupon rate. It will mature in 5 years, and coupon payments are made annually. Present annual yields on similar bonds are 8.35%. What should the current price be; a. b. c. d. 1,015.25998.35997.15960.44 30 Microsoft's stock has a beta of 1.25 . The risk free rate is 2.45%, and the expected rate on stocks is 11%. What is the required return for Microsoft using CAPM. a. b. c. d. 13.14% 14.25% 15.35% 16.39% 31 Companies are a. not required to report net income and gain (loss) on sale of a divested entity b. required to include sales and expenses of discountinued operations c. not required to report financial data for each operating segment d required to report financial data for each operating segment 32 A 12\% coupon rate bond makes annual interest rate payments. Par value is $1,000. The bond matures in 10 years. The required rate of return is 9.25%. What is the current price a. 1,174.56 b. 1,121.50 c. 1,098.25 d. 1,005.52 33 Alcoa recently paid a quarterly dividend of .10, (ten cents). The required rate of return, using CAPM, is 12.25%. Using a sustainable growth rate of 6.5%, the value of Alcoa stock should be closest to a. b. c. 7.41 d 5.26 3.15 2.25