PLEASE ANSWER ALL QUESTIONS IF POSSIBLE

QUESTION 10

If a stock's dividend is expected to grow at a constant rate of 6% a year, which of the following statements is CORRECT?

		The stock's dividend yield is 6%.
		The expected return on the stock is 6% a year.
		The stock's required return must be equal to or less than 6%.
		The price of the stock is expected to decline in the future.
		The stock's price one year from now is expected to be 6% above the current price.

QUESTION 11

The expected return on some companys stock is 14%. The stocks dividend is expected to grow at a constant rate of 8%, and it currently sells for $50 a share. Which of the following statements is CORRECT?

		The stock price is expected to be $50 a share one year from now.
		The stocks dividend yield is 7%.
		The stocks dividend yield is 8%.
		The stock price is expected to be $48 a share one year from now.
		The stocks dividend yield is 6%.

QUESTION 12

Suppose you want to retire when you reach age 70, at that time you want to have $1,000,000 accumulated in your retirement account. Now your 25 years old, starting today, how much you have to save equally, at the beginning of each year, in order to reach your retirement goal if the account earns 5% annually compounded interest?

		3,499.57
		8,262.46
		6,261.73
		5,963.56
		7,365.47

QUESTION 13

A company is evaluating two independent projects for capital investment purposes. If the company has only $85 million to invest, and its required return is 10 percent by how much the companys value will increase?

All values are in millions.

	Project 1	Project 2
0	-50	-50
1	10	0
2	10	10
3	40	0
4	40	80

		$24.73
		$21.45
		$37.64
		$12.91
		$8.54

QUESTION 14

One year from now, you deposit $1000 in a savings account. You deposit $2500 the following year. Then you wait three more years (until 5 years from now) and deposit $2000. If your account always earns 5% annual interest and you make no withdrawals, how much will be in the account 15 years from now?

		12,537.45
		11,174.92
		8,364.74
		13,125.63
		9,951.84

QUESTION 15

A company is considering a project with the following cash flows:

Initial Investment = -$200,000

Cash Flows: Year 1 = $140,000

Year 4 = $80,000

Year 5 = $120,000

If the appropriate discount rate is 12%, what is the NPV of this project?

		83,117.71
		52,861.24
		62,482.34
		74,189.14
		43,932.67