d. $1,348.48 e. $1,522.64 Which of the following banks 32. You are interested in investing your money in a bank account. provides you with the highest effective rate of interest? a. Bank 1; 8 percent with monthly compounding. b. Bank 2; 8 percent with annual compounding. c. Bank 3: 8 percent with quarterly compounding. d. Bank 4; 8 percent with daily (365-day) compounding. e. Bank 5; 7.8 percent with annual compounding. The 33. The Textbook Production Company has been hit hard due to increased competition. company's analysts predict that earnings (and dividends) will decline at a rate of 5 percent annually forever. Assume that k,- 11 percent and Do $2.00. What will be the price of the company's stock three years from now? a. $27.17 b. $ 6.23 e. $28.50 d. $10.18 e. $20.63 34. You recently received a letter from Cut-to-the-Chase National Bank that offers you a new eredit card that has no annual fee. It states that the annual percentage rate (APR) is 18 nt on outstanding balances. What is the effective annual interest rate? (Hint: perce Remember these companies bill you monthly). a. 18.81% b. 19.56% c. 19.25% d.20.00% e. 18.00% 35. If D-SI50, g (which is constant) = 6.5%, and Po-S56, what is the stock's expected capital gains yield for the coming year? a, b. 650% 6.83% d. 7.52% 7.90% e. 86 Whited Inc.'s stock currently sells for $35.25 per share. The dividend is projected to increase at a constant rate of 4.75% per year. The required rate of return on the stock, , is l 1.50%. What is the stock's expected price 5 years from now