Hello I have a Finance test in the next hour Can anyone make an excel sheet up these problems so i can plug and play during the test. Or work out the problems so I can use as examples for my test.

Sample Questions

1) What provision entitles the common shareholder to maintain a proportionate share of ownership in a firm? A) the cumulative feature B) the convertible feature C) the proportionality clause D) the preemptive right

2) Homer's Trucking Company bonds have a 11% coupon rate. Interest is paid semi-annually. The bonds have a par value of $1,000 and will mature 8 years from now. Compute the value of Homer's Trucking Company bonds if investors' required rate of return is 9.5%. A) $1,197.27 B) $1,133.05 C) $1,098.99 D) $1,082.75

3) Kilsheimer Company just paid a dividend of $5 per share. Future dividends are expected to grow at a constant rate of 7% per year. What is the value of the stock if the required return is 16%? A) $33.44 B) $55.56 C) $59.44 D) $65.87

4) You are considering the purchase of a share of Edie's common stock. You expect to sell it at the end of 1 year for $32.00. You will also receive a dividend of $2.50 at the end of the year. Edie just paid a dividend of $2.25. If your required return on this stock is 12%, what is the most you would be willing to pay for it now? A) $28.57 B) $33.05 C) $20.83 D) $30.80

5) Which of the following statements concerning bonds and risk is true? A) Because the interest payments and maturing value are known, the only risk associated with investing in bonds is default risk. B) Zero coupon bonds are always more risky than bonds with high coupon rates because of the time value of money. C) Bonds are generally less risky than common stock because of the preference for debt over equity in the event of bankruptcy and liquidation. D) B-rated bonds are above average for risk, i.e., less risky than the average bond.

6) A $1,000 par value 14-year bond with a 10 percent coupon rate paid annually recently sold for $965. The yield to maturity is A) 10.49%. B) 10.00%. C) 8.87%. D) 6.50%.

7) ADR Bank preferred stock pays an annual dividend of $2.75 per share. If the stock is currently selling for $27.50 per share, what is the expected rate of return on this stock? A) 2.75% B) 10.0% C) 17.5% D) 27.5%

8) The correct relationship for a premium bond is A) current yield > yield to maturity > coupon rate. B) current yield > coupon rate > yield to maturity. C) coupon rate > yield to maturity > current yield. D) coupon rate > current yield > yield to maturity.

Key

1. D

2. D

3. C

4. D

5. C

6. A

7. B

8. D