A $5$ year bond with annual coupon payments of $6\%$ is selling at $82\mathrm{.}50\%$ of par value. What is its yield to maturity?: $*$

a$.6\mathrm{.}0\%$

b$.10\mathrm{.}7\%$

c$.12\mathrm{.}0\%$

d$.17\mathrm{.}5\%$

A US exporter is due to deliver product in Mexico in six months and receive payment in Mexican pesos. Which transaction presented below could eliminate the importer's exchange risk?: $*$

a$.$ Sell pesos at the spot exchange rate and deposit the proceeds in a US bank

b$.$ Buy pesos at the spot exchange rate and deposit the proceeds in a Mexican bank

c$.$ Buy pesos forward $(6$ months$)$

d$.$ Sell pesos forward $(6$ months$)$

A stock has a beta of $0\mathrm{.}8.$ Using the Capital Asset Pricing Model what is the expected return of the stock if the risk$-$free rate is $4\%$ and the expected risk premium on the market is $8\%?*$

a$.6\mathrm{.}4\%$

b$.10\mathrm{.}4\%$

c$.12\mathrm{.}0\%$

d$.14\mathrm{.}4\%$

In $2011$ ABC Company earned $$15$ per share and paid out dividends of $$3$ per share. Its stock price at the end of $2011$ was $$60.$ What was ABC's payout ratio and price to earnings ratio?: $*$

a$.$ Payout ratio: $0\mathrm{.}05,$ Price to earnings ratio: $2\mathrm{.}00$

b$.$ Payout ratio: $0\mathrm{.}05,$ Price to earnings ratio: $4\mathrm{.}00$

c$.$ Payout ratio: $0\mathrm{.}20,$ Price to earnings ratio: $2\mathrm{.}00$

d$.$ Payout ratio: $0\mathrm{.}20,$ Price to earnings ratio: $4\mathrm{.}00$

As an analyst you believe that Acme Company will pay a dividend of $$3$ per share next year. Thereafter you expect the dividends to grow by $5\%$ each year. You require a rate of return of $10\%$ on your investments. How much are you willing to pay for Acme stock? $*$

a$.$ $$30\mathrm{.}00$

b$.$ $$60\mathrm{.}00$

c$.$ $$75\mathrm{.}00$

d$.$ $$90\mathrm{.}00$

If the fixed cost decreases the sales volume at the break$-$even point will $($assuming all else constant$)$:: $*$

a$.$ Increase

b$.$ Remain the same

c$.$ Decrease

d$.$ Not possible to determine

The purpose of the receivables turnover is to evaluate the firm's ability to: $*$

a$.$ Factor its receivables

b$.$ Generate sales

c$.$ Pay its bills on time

d$.$ Collect its receivables on time