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finance for decision making What is the present value of the following set of cash flows when the discount rate is 12% p.a.? Year 1

finance for decision making

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What is the present value of the following set of cash flows when the discount rate is 12% p.a.? Year 1 $150 Year 2 $300 Year 3 $500 Year 4 $950 (round to the nearest dollars) $159 305 $158 305 $185 304 $195 305 $153 805 The Pancake House pays a constant annual dividend of $1.25 per share require a 15 per cent rate of return? $11.38 $7.86 $8.33 $11.04 $10.87 You have observed the returns for an investment in Telstra shares for the last five years. This shows returns of 23 per cent, -17 per cent, 8 per cent, 22 per cent, and 3 per cent. The stock has an average return of per cent and a standard deviation of per cent. 7.80;13.54 7.80;14.63 7.80;16.36 14.60;14.63 14.60;16.36 Unsystematic risk is not relevant because it does not change it cannot be eliminated through diversification it can be eliminated through diversification it cannot be estimated Which statement in relation to government bonds is correct? The greater risk associated with longer-term bonds explains why they tend to have higher yields than similar short-term bonds. The longer the period to maturity the smaller the effect of changes in general interest rates on bond price. The longer the period to maturity the greater the effect of changes in general interest rates on bond price. A and C are correct

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