In brokered markets

	A	The commission charged by brokers is a lower cost to buyers and sellers than the cost of direct search
	B	Buyers and sellers are brought together for a transaction fee
	C	Brokers build a pool of price information through their extensive contacts
	D	All of the above are true of broker markets

The Columbia Consumer Products Co. has issued perpetual preferred stock with a $100 par value. The firm pays a quarterly dividend of $2.60 on this stock. What is the current price of this preferred stock given a required rate of return of 12.5 percent?

	A	$47.25
	B	$80.00
	C	$20.80
	D	$83.20

What is the present net value of a project with the following cash flows if the discount rate is 17 percent?

Year	Cash Flow
0	-$59,200
1	21,600
2	28,300
3	14,400
4	7,200

	A	-$8,406.11
	B	-$7,231.71
	C	-$3,089.16
	D	$1,407.92
	E	$3,508.01

Yield to maturity: John Wong purchased a five-year bond today at $1,034.66. The bond pays 6.5 percent semiannually. What will be his yield to maturity?

	A	6.7%
	B	6.2%
	C	5.9%
	D	5.7%