8 Pass-2252 CORPORATE F Title: 12-My paper Permitted internet resources By Rehan Chowdhury 1 of 2 Each question in this section has only ONE correct answer 1) Which of the following statements about corporations in false? A The shareholders' liability is limited to their investment B A corporation can exist longer than its owners A corporation is a distinct legal entity D Because ownership in a corporation is recented by shares of stock, ownership cannot easily be transferred to new ones E Perpetual succession is an advantage of corporations 21 Which of the folosing amounts is closest to the end value of investing 120,000 for 5 years at an effective annual interest rate of 916 compounded annually A 120,000 More c000,000 Next >> F305PM Time 12:27 Next > KREDD E Perpetual succession is an advantage of corporations 2) Which of the following amounts is closest to the end value of investing E120.000 for 5 years at an effective annual interest rate of 9% compounded annually? A 120,000 B 600,000 C 648,000 D 184.634 E 163.258 3) Which of the following amounts is closest to the present value of payments of 50,000 at the end of each of the next three years if the appropriate interest rate is 10%? A 37,565 More Next >> Next >> 4 M F NO DD ^ By: Rohan Chowdhury ends at 4:10 00 PM Time 22:37 the pager is saved in fo 1 of 2 Next > E 163.258 [69] 3) Which of the following amounts is closest to the present value of payments of 50.000 at the end of each of the next three years if the appropriate interest rate is 10%? A 37,560 B 130.305 C 124,343 G D 146,485 E 150,000 4) Which of the following is closest to the current market value of a risk free bond with a face value of 2,000 which pays a coupon of 5% and which matures in 4 years time with a redemption value of 2,400 if providers of debt finance require a rate of return of 10167 C314.98 More Next RE a 5) Which of the following capital budgeting techniques ignores the time value of money? A Profitability index B Internal rate of return C Net present value D Discounted payback E None of the above 6) According to the net present value rule, an investment should be undertaken if