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5 S) Wine and Roses, Inc., offers a bond with a coupon of 9.50 percent with so What is payments and a yield to maturity

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5 S) Wine and Roses, Inc., offers a bond with a coupon of 9.50 percent with so What is payments and a yield to maturity of 10,56 percent. The bonds mature in 8 years. the market price of a $1,000 face value bond? A) S1504.69 D) $1439,00 E S1046.12 B) $1448.37 C) $943.69 6) A project is expected to generate annual revenues of $125,700, with variable costs of- $77,800, and fixed costs of S18,300. The annual depreciation is $4350 and the tax rate is 40 percent. What is the annual operating cash flow? B) 567.940 A) $49,640 C) $29,600 D) $19,500 E) $33,950 7) Judy's Boutique just paid an annual dividend of S2.29 on its common stock. The firm 7 increases its dividend by 3.10 percent annually. What is the company's cost the current stock price is $38.20 per share? of equity if A) 8.59% B) 9.65% C) 9.28% D) 8.84% E) 9.09% s) A project has an initial cost of $31,800 and a market value of $29,600. What is the 8) difference between these two values called? A) Discounted payback B) Accounting return C) Net present value D) Profitability index E) Payback value 9) Roger's Meat Market is considering two independent projects. The profitability index 9) decision rule indicates that both projects should be accepted. This result most likely does which one of the following? A) Conflicts with the results of the net present value decision rule B) Assumes the firm has sufficient funds to undertake both projects c) Agrees with the decision that would also apply if the projects were mutually exclusive D) Bases the accept/reject decision on the same variables as the average accounting E) Fails to provide useful information as the firm must reject at least one of the return projects 10) Your goal is to have S1 million in your retirement savings on the day you retire. To fund 10) this goal, you will make one lump sum deposit today. If you plan to retire rather than smaller lump sum today A) later; sooner; low B) sooner; later; low c) sooner; later, high D) later; sooner; high E) today; later; high and earn arate of interest, then you can deposit a

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