Company XYZ has a net income of $1,000,000 and 500,000 outstanding shares. If the company's earnings per share (EPS) is $2, what is the company's price-to-earnings (P/E) ratio?

 

A bond has a par value of $10,000 and a coupon rate of 4%. If the bond is selling at a discount of 2%, what is the bond's current yield?

 

C) An investment that costs $50,000 today is expected to have a net present value (NPV) of $100,000 in ten years. If the discount rate is 6%, what is the investment's internal rate of return (IRR)?

D) A stock has a beta of 1.5, an expected return of 12%, and a risk-free rate of 3%. What is the stock's required rate of return according to the capital asset pricing model (CAPM)?

E) A company has total assets of $5,000,000 and total liabilities of $2,500,000. If the company has 500,000 outstanding shares and a book value per share of $10, what is the company's price-to-book (P/B) ratio?

F) A company is considering two projects, Project A and Project B. Project A has an initial investment of $100,000 and is expected to generate cash inflows of $40,000 per year for five years. Project B has an initial investment of $200,000 and is expected to generate cash inflows of $60,000 per year for five years. If the discount rate is 8%, which project should the company choose based on the net present value (NPV) method?

G) A company is considering a new production line that will require an initial investment of $500,000. The company expects the new production line to generate cash inflows of $200,000 per year for five years. If the discount rate is 10%, what is the project's payback period?

H) You are considering purchasing a rental property for $500,000. The property is expected to generate rental income of $4,000 per month, and has expenses of $2,000 per month. If you finance the purchase with a 30-year mortgage with a fixed rate of 4%, what will your monthly mortgage payment be, and what is the property's cash-on-cash return?