6. If you have information that the economy is about to enter a recession, and your firm needs to borrow moncy, it should probably issue long-term rather than short-term debt. (A) True b. False 7. Last year Maggic invested $11,500 in the shares of PVA Corp. Each year, the company distributed dividends to its shareholders. Each year, Maggie received $50 in dividends. Today, Maggie sold her shares for $12,000. What is the holding period return (yield) of her investment? (a) 4.78%. b. 15%. c. 10.5%. d. Missing information. Cannot answer. 8. Given some amount to be received several years in the future, if the interest rate increases, the present value of the future amount will a. Be higher. (b. Be lower. c. Stay the same. d. Cannot tell. e. Be variable. 9. A recent advertisement in the financial section of a magazine carried the following claim: "Invest your money with us at 10 percent, compounded annually, and we guarantee to triple your money sooner than you imagine. "Ignoring taxes, how long would it take to triple your money at a simple rate of 10 percent, compounded annually? a. Approximately 3.5 years b. Approximately 5 years c. Approximately 7 years d. Approximately io years e. Exactly 14 years 10. What is the future value of a series of semi-annual payments of $200, evaluated at a 10 percent interest rate compounded semiannually over 6 years? a. $4,276.86 b. $3.842.91 c. $3,183.43 d. $1,360.38 N=6I=104 e. $1,348.48 PMT=200P/4=2 calc =1,360.38