5. The present value of $1,000 to be received in 1 year with annual compounding at a 10% per year rate, would be: (Points : 1) $900.00. $909.09. $990.90. $1,100. Question 6. 6. We would expect that, all else being equal, investors would pay less for a stock that they view as having become more risky. Assume a stock has just paid a $2.00-per-share dividend. Analysts believe that future dividends will grow at a 14% rate. The constant dividend growth rate is 4%. What would the stock price be? (Points : 1) $14.29 $20.00 $20.80 $28.57 Question 7. 7. An ordinary annuity has its first payment ______, but an annuity due has its first payment _________. (Points : 1) at the beginning of the period; at the beginning of the period. at the beginning of the period; at the end of the period. at the end of the period; at the end of the period. at the end of the period; at the beginning of the period. Question 8. 8. the effective annual percentage rate may be different that the stated APR (annual percentage rate) because: (Points : 1) compounding occurs more often than once a year. extra fees are added to most loans. banks are allowed to hide the real cost of borrowing. the APR assumes semiannual compounding. Question 9. 9. GMX Resources, an independent oil and gas exploration and production company, has a 9.25% preferred stock outstanding, which pays an annual dividend of $2.3125. If investors require a return of 15% on small companies in this sector, what will this preferred stock sell for? (Points : 1) $14.11 $14.72 $15.41 $28.58 Question 10. 10. In an amortized loan: (Points : 1) the payments are the same every period, but the proportion that is interest increases. the payments are the same every period, and the proportion that is interest also is unchanged. the payments vary every period, but the proportion that is interest doesnt change. the payments are the same every period, but the proportion that is interest decreases.