8. TI MEU APR, Compounding more frequently leads to A. a lower APR B. a higher APR C. a lower EAR D. a higher EAR Standards Life Insurance offers a perpetuity that pays annual payments of $100,000. This contract sells for $2,750,000 today. What is the interest rate? First payment occurs one year from now. A. 3.64 percent B. 3.87 percent C. 4.10 percent D.4.21 percent 9. Bates, Inc. has net income of $161,000, a profit margin of 7.33 percent, and an average accounts receivable balance of $127,100. Assume that 66% of sales are credit sales. On an average of how many days, can the firm collect back its receivables? A. 31 days B. 32 days C. 33 days D. 34 days 10. Which of the following is correct? A. A firm's external financing need is financed by net income B. EFN will limit growth if unfunded C. In 17 years, $2,100 will grow into $8,274 at an interest rate of 8.4% compounded semiannually. D. When comparing borrowing options, you should select the lender that offers the lowest APR. 11. The Meat Market has $747,000 in sales. The profit margin is 4.1 percent and the firm has 7,500 shares of stock outstanding. The market price per share is $22. What is the price-earnings ratio? D. 13.15 C. 11.42 B. 8.98 A. 5.39 12. BC Koppelman Business School alumni would like to start a fund that will award annual scholarship of $15,000 for 20 years. The first scholarship will be awarded 3 year from now. How much should he deposit into this fund today if the fund can earn 6% annually