7. You are considering buying one share of Triple Tree Tubers, Inc. (TTTI) common stock. You anticipate selling the share in one year for $96.00. You also anticipate receiving a dividend of $7.50 at the end of the year (instantaneously before selling the share). If your required return in valuing this stock is 12%, what is a perfecty fair price to pay for the share of TTTI stock today? a. $102.70 b. $93.21 c. $92.41 d. $83.23 e. $62.50 8. Duka Lonchick is currently evaluating an investment in a Slovenian basketball franchise. The franchise is expected to produce these cash flows: CF1=$22,000,CF2=$19,360,CF3=$21,296, and CF4= $117,128. The up-front investment is $40,000. Using a required return of 10%, calculate the discounted payback period for the franchise. (All answers below are expressed in years.) a. 2.25 b. 2.19 c. 2.00 d. 1.93 e. 3.00 9. Old Imbalance Footwear, Inc., stock pays $3.20 /share each year in dividends, with investors' required return equaling 10%. What is the price of a share of stock? a. $320 b. $16 c. $32 d. $160 d. $0.32 10. Determine the yield to maturity of a nine-year Goldenrod Diving \& Scuba (GD\&S) bond that pays a coupon rate of 20%/ year, has a $1,000 face value, pays annual coupons, \& is currently priced at $1426. Round your answer to the nearest whole percent. a. 10% b. 12% c. 25% d. 8% 11. Calculate the value of a one-year, zero-coupon bond that has a face value of $10,000. Use a required rate of return of 25% in your calculation. (Note that the face value is $10,000 instead of the more common $1,000) a. $8,000 b. $12,500 c. $7,500 12. Londra Dalray, Inc., is considering a new music-streaming service that involves the following CFs: Initial Outlay =$13,000;CF1=$5000;CF2=$3000;CF3=$9000. If the discount rate is 15%, compute the NPV of this potential new project (with your answer rounded to the nearest dollar). a. $4000 b. $27,534 c. $466 d. $8891