Please answer all of the questions below. Be sure to use models and equations were appropriate to answer your questions. Each Question is worth 11 points. 1) The objective of the CEO of a firm is: A) Maximize profits B) Maximize market capitalization C) Minimize sales D) None of the above 2)Assuming that the EPS of a company is $7.95, the dividend payout ratio is 50%, and the price of the stock is equal $48.88. What is the expected rate of return on the stock? A) 14.95% B) 12.45% C) 16.26% D) None of the above 3) Which of the following Capital Budgeting methods are consistent under all circumstances? A) Internal Rate of Return (IRR) B) Net Present Value (NPV) C) Profitability Index (PI) D) Allow of the above 4) Determine the price of a stock if the earnings per share in time period one are equal to $45.89, dividend payout ratio is 33%, and the rate of return on equity is 12.69% according o the constant growth model. A) $362 B) $145 C) $236 D) None of the above N: 5) Assume the returns for Stock A are -10%, 18%, 9%, 12%, 8% over a five year period. Determine the standard deviation of Stock A. A) 14.67% B) 109.75% C) 10.48% D) None of the above 6) If the NCO is equal to -$100,000 and the cash flows are $300,00 a year for 4 years, the cost of capital is 12%, determine the NPV of the project. A) S-911,205 B) $59.890 C) $-750,00 D) None of the above 7) Assuming that the mean of the stock market is 10.00% and the standard deviation is 20%, within a 95% probability what are the possible returns? A) -30% to 50% B) -10% to 30% C) -9.56% to 20.2% D) None of the above 8) Assuming the risk free rate is 3% and the risk premium of the market is 10.50%, if beta is equal to 90, then the return on the stock is equal: A) 10.98% B) 12.45% C) 10.45% D) None of the above 9) If the financial markets are semi - strong efficient then this means: A) The price of the stock reflects all past information B) The price of the stock responds to publically available information C) The price of the stock reflects all non-public available information D) All of the above 10) If the covariance of security A and the Market is 110%, the variance of security A 150%, and the variance if the market is 95%, the correlation is equal to: A) .77 B) .68 C) .92 D) None of the above