HA MULTIPLE CHOICE. Cha question E Choose the one alternative that best completes the statement as the est is paid times per year, then the per period interest A) compound interest ratetimes B) effectiven e C) annual percentage rate (APR) divided by D) effective annual rate divided by 2) 2) Calculate the ERIT for firm with 54 million total revenues, 53.5 million cost of goods sold, $500.000 depreciation expense, and $120,000 interest expense. A) SO B) $500,000 C) 30.000 D) (5120,000) 3) As the coupon rate of a bond increases, the band's A) current price decreases B) maturity date is extended C) interest payments increase. D) face value increases 4) 4) What is the expected constant-growth rate of dividends for a stock currently priced at $50, that just paid a dividend of $4, and has a required return of 1897 A) 9.26% B) 12.596 C) 5.50% D) 3.41% 5) Established firms can create value by developing long-term relationships and maintaining a good reputation A) True B) False 6) 6) A project has a beta of 1.24, the risk-free rate is 3.8%, and the market rate of return is 9.2%. What is the project's expected rate of return? A) 15.21% B) 14.61% C) 10.50% D) 11.41% 7) 7) By how much must a firm reduce its assets in order to improve ROA from 10% to 12% if the firm's operating profit margin is 5% on sales of S4 million? Assume that the reduction in assets has no effect on sales or profit margin A) $400,000 B) $516,167 C) $240,000 D) $333,333 8) 8) To calculate free cash flow, you must deduct capital expenditures from the cash flow from operations. A) True B) False