Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer all the questions ABC DOO 0000 000 00000 Multiple Choice. 3 point en PIBUS DIGITAL answer 1. As a commercial loan customer, I

please answer all the questions image text in transcribed
image text in transcribed
image text in transcribed
ABC DOO 0000 000 00000 Multiple Choice. 3 point en PIBUS DIGITAL answer 1. As a commercial loan customer, I would prefer a loan with because it is less expensive a daily compounding b. weekly compounding clevel total payments and monthly compounding d level principal payments level total payments 2. The market for the first public offering of shares is called the a secondary market bused market cover the counter market dbroker market e primary market 3. If the general level of interest rates goes up and I am holding a bond with a fixed coupon rate, I would expect the value of my bond to a stay the same double Cincrease d decrease 0 not enough information to tell 4. If Alex owns 500 shares in a company with cumulative voting and the most votes he can cast for Himself in the next board election is 1000 votes, how many board positions are open? Five b. Four ABCO ABCDE ABCDE 38 OOOOOOOOOO ABCDE ABCDE ABCDE OOO 3700000 ABCDE OOOOOOOOOO ABCO E D C ABCDE B A 0000000000000 E D C B A ADD ABCDE WOOOO00000000000 ABCDE ODDOD 10000000000 200000 na ADE AGO d TWO ACE o. Ono DOOOO OOOOOOO 5. The Rule of 72's is about doubling the present value to get the future value b. Says that 72 divided by the payment gives you the number of years to double c. Says that the rate divided by 72 gives you the number of years to double d Botha and b e Botha and OOOOO 6 A perpetuity with a payment of $35,000 per year and a return of 5% would cost you a $1,120,000 b. $2,283,714 c. $1,600,000 d. $700,000 e $228,571 SPECIAL CODES 7. Which of the following is an assumption of the dividend growth model? a. The current dividend divided by 1+g equals the next dividend. b. G must be greater than R. c. The stock must pay dividends. d. Both price and dividend will grow at R indefinitely. e. The price and dividend will increase gradually over the years 8. A stock with a dividend yield of 5% and a total yield of 11% a. Must be growing at 4% b. Must have a capital gains yield of 13%. c. Must have a capital gains yield of 6%. d. Must have a share price greater than $100. e. None of the above. 9. You would use the dividend growth model (DGM) method to determine the value of a stock a. with an unusual or non-constant growth pattern b. When the growth rate of the stock is greater than the rate expected in the marketplace. c. with the same dividend every time. d. With a very stable, nominal growth pattern e. For a stock that does not pay dividends 10.A certain investment has an APR of 7% and an EAR of 7%. From this information we know that: a. One of the rates must be incorrect b. The investment actually earns 7.296 C. This is not a good investment for several reasons. d. The investment compounds quarterly, e. The investment compounds annually. 11. To find the PRESENT value of a problem with MULTIPLE cash flows (all the same amount) you would use: a. Table A-1 b. Table A-2 Table A-3 d. Table A-4 e. None of the above. 12. TLC Company expects constant 3% growth in a market that expects 6% on investments. ABC currently sells for $91.00 per share. What would you expect their next dividend to be? a $2.73 b. $1.89 c. $2.67 d. $3.08 e. $3.19 13. An example of an ordinary annuity would be a. Dinner at McDonald's in which you pay for your food before you receive it b. Your rent, which you pay on the first of the month c. Admission to a movie, where you pay before seeing the movie dYour "Agrade which you receive after working hard all semester e. None of the above. 14. Which of the following is FALSE about a put provision on a bond? a. It is popular with bondholders b. It lowers the coupon rate because of lower risk C.It allows bondholders to turn in the bond for cash. d. It is the reverse of a call provision e. It can be added to the bond indenture at any time. 15 The yield to maturity on bonds includes all of the following EXCEPT one. Which one? a. Interest rate risk b. Taxability c. Discount risk d. Default risk e. Expected future inflation 16. When adjusting for semiannual payments, you would a. Double the years and divide the rate by 12. b. Double the rate and divide the years in half C Double the years and divide the rate in half. d. Multiply the rate times 1 and divide the years in half. e. Multiply the years times four and divide the rate by four. 17. The total value of a bond a. Will be above $1,000 if the YTM is greater than the coupon rate. b. Makes it a premium bond when the value is less than $1,000 c. Equals the total of the present values of the coupon stream and the face value. d. Will be above $1,000 whenever the bond is a good buy. e. Will always have a coupon rate greater than the market rate 18. The rates that banks are required to use in quoting to customers is a. The Annual Percentage Rate b. The Fisher Effect c. The Effective Annual Rate d. The Effective Annual Yield e. None of the above 19. A 6% loan with monthly payments for 30 years a. Would have 330 payments. b. Would have a rate of 1/2% per month C. Would have payments greater than $1,000 each. d. Would be difficult to pay off in 30 years. e. Would have payments twice a year. 20. If a bond is callable January - June each year, then a. The call dates can change from year to year. b. The bond CANNOT be called on March 1. c. The bond is call protected July - December each year. d. The bond CAN be called on September 30. e. The bond can be called anytime

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Entrepreneurial Finance

Authors: Gary E. Gibbons, Robert D. Hisrich, Carlos Marques DaSilva

1st Edition

ISBN: 1452274177, 978-1452274171

More Books

Students also viewed these Finance questions

Question

What is an access token?

Answered: 1 week ago

Question

What were your most important educational experiences?

Answered: 1 week ago

Question

Which personal relationships influenced you the most?

Answered: 1 week ago