Choose the correct answer

1. Google just paid a dividend of $5 per share. It has the required return of 25%. The dividends are expected to grow 6% for next 3 years and then 7.5% for the following years. What will the price of stock today?

a. $30.72

b. $30.58

c. $31.91

d. $30.13

e. $29.52

2. PT Vape has a required return of 15%. The company will pay $6.5 per share dividend in 5 years and increase the dividend by 3% in the following year. PT Vape give no dividends for the first 5 years. Find the current share price

a. 25.9

b. $20.0

c. $20.5

d. 27.2

e. 26.9

3. Every year, PT Pisente pay the dividends for their stockholders. This year (2020) they will give $5.1 for each share, and in the 2021, they will give $5.8 for each share. The required return for this company is 25%. How much the price of Pisente's stock value now (2020)?.

4. Bond Q currently sells at 115% of par value. It has 8.5% of coupon rate and 6% of YTM. How long will Bond Q matures?.

a. 7 year

b. 6 year

c. 5 year

d. 8 year

e. 9 year

5. Magnet corp. has sales revenue of $50,000, cost of good sold $22,500, depreciation expense $5000 and interest expense of $1,500. If the tax rate is 25%, what is the operating cash flow?

a. No right answer

b. 22,250 ?

c. 21,000

d. 13,650

e. 27,500

6. Bond A has a rating of B.

Bond B has a rating of AAA.

Which one of the following statements is true regarding these two bonds?

a. Bond A has an investment grade quality

b. Bond B has an investment grade quality

c. Required return on Bond A is lower than Bond B

d. Required return on both bond doesn't depend on their credit rating.

e. Required return on both bond is on the same level

7. All firms daily transaction is included in

a. Working Capital

b. Capital Budgeting

c. Capital Structure

d. Net present value of investment

e. Investment Efficiency

8. Jackson Imports issued 17-year bonds 2 years ago at a coupon rate of 10.3 percent. The bonds make semiannual payments. These bonds currently sell for 102 percent of par value. What is the yield-to-maturity?

a. 9.98 percent

b. 10.42 percent

c. 10.27 percent

d. 10.13 percent

e. 10.04 percent

9. Magnet corp. 2014 balance sheet showed a long-term debt of 2 million, common stock of 1,350 million and 1 million of paid in surplus account. The 2015 balance sheet showed 2,5 million long term debt and 1 million common stock and 3 million paid in surplus. If company paid out 135,000 interest and 550,000 dividend. What was the cash flow from asset?

a. 965,000

b. No correct answer

c. -965,000

d. -2.015 million

e. 2.015 million

10. Why should we add depreciation when calculating operating cash flow?

a. All are true

b. Its a non-cash expense

c. Its a non-taxable expense

d. Its not an important expense

e. Sometimes when we buy new assets, depreciation will also increase

11. Below are the determinants of cash flow from assets, except:

a. Current liabilities

b. Bonds and other long-term debt

c. Current asset

d. Net capital spending

e. Operating cash flow