8. You are saving money to buy a car. If you save $350 per month starting one month from now at an interest rate of 9 %, how much will you be able to spend on the car after saving for 4 years? OA $24,159 . S12,079 Oc. $20,132 OD. $28,185 What is the yield to maturity of a eight-year, $10,000 bond with a 5.5% coupon rate and semiannual coupons if this bond is currently trading for a price of $9,512? 9. OA. 8.8% . 3.14% OC. 7.54% OD. 6.29% A company has stock which costs $43.50 per share and pays a dividend of $2.40 per share this year. The company's cost of equity is 12 %. What is the expected annual growth rate of the company's dividends? 10. OA. 12.96% . 25.92% OC. 6.48% OD. 19.44% Clarissa wants to fund a growing perpetuity that will pay $9,000 per year to a local museum, starting next year. She wants the annual amount paid to the museum to grow by 5 % per year. Given that the interest rate is 9%, how much does she need to fund this perpetuity? 11 OA. $225,000.00 OB. $270,000.00 Oc. $180,000.00 OD. $112,500.00 Page 3 A lender lends $10,100, which is to be repaid in annual payments of $2,010 for 6 years. Which of the following shows the timeline of the loan from the lender's perspective? 12 Year 2 Year 3 Year 4 Year 5 Year 6 S4,010 $6,010 $8,010 $10,010 $12,010 Year 4 Year 1 -$10,100 $2,010 Year 1 OA. Year 0 Year 5 Year 6 Year 3 -$10,100 $2,010 $2,010 $2,010 $2,010 $2,010 $2,010 Year 2 OB Year 0 Oc Year 4 -$10,100 $2,010 $2,010 $2,010 $2,010 $2,010 Year 3 Year 4 Year 5 $2,010 $2,010 $2,010 $2,010 $2,010 Year 2 Year 3 Year 5 Year 6 Year 1 Year 6 Year 2 OD. Year 1 0 If$10,000 is invested in a certain business at the start of the year, the investor will receive $3,000 at the end of each of the next four years. What is the present value of this business opportunity if the interest rate is 5% per year? 13. OA. $638 OB. $319 OC. $1,021 OD. $765 A stock is expected to pay $3.20 per share every year indefinitely and the equity cost of capital for the company is 10 %. What price would an investor be expected to pay per share next year? 14. OA. $32.00 OB. $8.00 OC. $16.00 OD. $24.00