Please review the attachment and respond to all answers within 25min

1. QUESTION 1 A project has an initial investment of $25,000, with $6,500 annual inflows for each of the subsequent 5 years. If the required return is 12%, what is the NPV? $6,500. 00 $2,447. 02 $1,568. 95 $215.46 $1,763. 81 1 points QUESTION 2 1. If market interest rates are currently 15% and your investment provides you this 15% return, does that imply that you are 15% more wealthy (after vs before this investment return)? Assume wealth is defined as the ability to consume (purchase) goods or services. Yes, because with inflation you do indeed have 15% more money Yes, because with inflation 15% more money does imply 15% more wealth. No, because with inflation 15% more money does not imply 15% more wealth. No, because with inflation 15% more money means your wealth increased more than 15%. None of the other responses are correct 1 points 1. QUESTION 3 Which of the following is most directly related to value creation? sales Cash flow Market share Net income 1 points 1. QUESTION 4 On average, the market compensates investors for taking Nondiversifiable, aka market risk diversifiable risk Firm-specific risk None of the other responses are correct 1 points QUESTION 5 1. As bond market interest rates increase, the value (i.e., price) of a fixed coupon interest rate bond (i.e., a typical corporate bond) does not change increases decreases insufficient information to answer this question None of the other responses are correct 1 points 1. QUESTION 6 Which of the following financial assets would be most susceptible (vulnerable) to a decline in value if interest rates increased? a short term fixed income financial asset (ex. short term bond) a long term fixed income financial asset (ex. long term bond) a long term variable interest rate income financial asset they would all be approximately equally susceptible to a decline in value. None of the other responses are correct 1 points 1. QUESTION 7 In an efficient capital market studying past prices will help you earn above average returns on stock investments all security investments are positive NPV investments. securities are relatively fairly priced based on the information available to all investors above normal returns can not be earned None of the other responses are correct 1 points 1. QUESTION 8 Assuming you will leave your money in the bank for the entire year, which of the following interest rate alternatives would you prefer? 11.75 % compounded semiannually 11.75 % compounded quarterly 11.45 % compounded weekly 11.45 % compounded annually None of the other responses are correct 1 points QUESTION 9 1. Since approximately 1900, historical evidence suggests that investing in common stocks has resulted in relatively high average annual returns with Relatively little annual variation, i.e. low risk Relatively high annual variation, i.e. high risk approximately the same annual variation as bonds no annual variation none of the other responses are true 1 points 1. QUESTION 10 Which of the following assets would be most suitable to financing with relatively larger amounts of long-term debt? Current assets, such as inventory Specialized long term assets Intangible long term assets Tangible (physical), standardized, and widely tradable fixed assets This question is irrelevant because firms should avoid using debt whenever possible. 1 points 1. QUESTION 11 Assume that you can buy a bond for $555 today. The bond will pay you $75 in annual coupon payments (i.e. interest payments) at the end of each of the next 12 years, plus repay the original $1000 par value of the bond at the end of the 12th year. What annual rate of return would you expect to earn on the investment (i.e., what is the bond s YTM?)? (Hint: use your basic TVM keys) 15.7 % 16.1 % 17.6 % 16.5 % None of the above or insufficient information 1 points 1. QUESTION 12 Which of the following would generally be considered the most risky (with respect to volatility of returns)? An investment in a portfolio of common stocks An investment in a single common stock randomly selected An investment in a single corporate bond randomly selected an investment in a portfolio of corporate bonds do not know 1 points 1. QUESTION 13 You have just taken out a 30-year mortgage on your new home for $120,000. This mortgage is to be repaid in 360 equal monthly installments., If the stated (nominal) annual interest rate is 14.75 percent, what is the amount of each of the monthly installments? $1,515. 00 $1,472. 38 $1,493. 37 $1,522. 85 $1,440. 92 1 points 1. QUESTION 14 Assume a firm has pursued a goal of maximizing profits in a purely literal sense and, as a result, has had positive, as well as growing profits since their inception. Which of the following statements is true? The firm ..... is pursuing the primary goal of the organization is acting in the best interests of all stakeholders is, by definition, also maximizing shareholders wealth may possibly be heading toward insolvency (i.e. bankruptcy) (due to insufficient cash flow) None of the other responses are correct 1 points QUESTION 15 1. The primary goal of a publicly-owned firm interested in serving its stockholders should be to Maximize expected total corporate profit. Maximize expected EPS. Minimize the chances of losses. Maximize the stock price (value) per share, I.e. owners' wealth (value). Maximize expected net income