Please show your formula manually or if you used a financial calculator, also a solution. I'm reviewing so if anyone can answer this right away. a big help :( thank you

Question 1

The next dividend payment by A Company will be $1.73 per share. The dividends are anticipated to maintain a 0.06% growth rate forever. If the stock currently sells for $16.44 per share, what is the investors' requiredreturn rate?(Round the final answer to 4 decimal places.)

Question 2

You have an 0.066%semiannual-pay bond with a face value of $1,000 that matures in 11years.If the yield is 0.09%, what is the price of this bond?Round your answer to 2decimal points.

(Please note the percentage is express in decimals in this question, e.g. 14% is expressed as 0.14%)?

QUESTION 3

1. Shareholders of convertible preferred stock generally have the:

A.

Obligation to convert their shares into callable shares of common stock.

B.

Right to convert their shares into shares of common stock.

C.

Right to convert their shares into bonds with an equivalent yield-to-maturity.

D.

Obligation to convert their shares into shares of common stock.

E.

Right to convert their shares into cash at par value at their discretion.

QUESTION 4

1. Which type of bond allows the issuer to buy back the bonds before maturity?

A.

Retractable bond.

B.

Convertible bond.

C.

Zero-coupon bond.

D.

Callable bond.

E.

High yield bond.

QUESTION 5

1. A supernormal growth stock generally:

A.

Has dividends that grow at a high rate for the life of the stock.

B.

Is valued using the preferred stock valuation technique.

C.

Is associated with a company that is experiencing rapid contraction.

D.

Has high growth dividends only for a limited number of years.

E.

Tends to increase its dividends per share by 30% or more for an extended number of years.

QUESTION 6

1. Which one of the following will increase the present value of an annuity?

A.

Payment of annuity in the end instead of payment at the beginning.

B.

Lowering the discount rate.

C.

Reducing the future value of the cash flow.

D.

Increasing the number of payments.

E.

Lowering the payment amount.

QUESTION 7

1. Which is the best definition of a perpetuity?

A.

The interest rate charged per period multiplied by the number of periods per year.

B.

An annuity for which the cash flows occur at the beginning of the period.

C.

An annuity in which the cash flows continue forever.

D.

A level stream of cash flows for a fixed period of time.

E.

A constant stream of cash flows without end that is expected to rise indefinitely.

QUESTION 8

1. Which is the best definition of an effective annual rate (EAR)?

A.

The interest rate expressed as if it were compounded once per year.

B.

A level stream of cash flows for a fixed period of time.

C.

An annuity for which the cash flows occur at the beginning of the period.

D.

The interest rate expressed in terms of the interest payment made each period. Also, quoted interest rate

E.

The interest rate charged per period multiplied by the number of periods per year.

QUESTION 9

1. Which one of the following statements is true concerning bond ratings?

A.

Bond ratings are based on both the risk of default and the interest rate risk.

B.

All else equal, a bond rated BB should pay a higher return than a bond rated B.

C.

A bond rated BBB or lower is considered a junk bond.

D.

Bond ratings are based only on the risk of default.

E.

By mutual agreement, DBRS and Standard & Poor's issue comparable ratings on all bonds.

QUESTION 10

1. When a bondholder is granted the right to force the issuer to repay the bond prior to maturity, the bond:

A.

Contains a zero-out provision.

B.

Contains a call provision.

C.

Contains a put provision.

D.

Is a convertible bond.

E.

Is an income bond.

QUESTION 11

1. A debenture is:

A.

An agreement whereby actions of the issuer are limited for the protection of the bondholders.

B.

A bond which pays payments to whoever has physical possession of the bond.

C.

The legal agreement between a bond's issuer and the bondholders.

D.

A secured bond which is backed by specifically-named collateral.

E.

Unsecured debt which generally has a maturity of 10 years or more.

QUESTION 12

1. Which is the best definition of an annuity due?

A.

The interest rate charged per period multiplied by the number of periods per year.

B.

A level stream of cash flows for a fixed period of time.

C.

The interest rate expressed as if it were compounded once per year.

D.

The interest rate expressed in terms of the interest payment made each period. Also, quoted interest rate

E.

An annuity for which the cash flows occur at the beginning of the period.

QUESTION 13

1. Which one of the following is correct concerning the annual percentage rate (APR)?

A.

The APR considers all the effects of compounding.

B.

The APR formula for rate disclosure is [1 + (r/m)]^m-1.

C.

The APR is best used to compare offers from various lenders.

D.

The APR is the rate which lenders are required to disclose in Canada.

E.

The APR is greater than the effective annual rate.

QUESTION 14

1. Which of the following is an example of a positive covenant?

A.

The firm cannot merge with another firm.

B.

The firm cannot sell or lease any major assets without approval by the lender.

C.

The company must maintain its working capital at or above some specified minimum level.

D.

The firm cannot pledge any assets to other lenders.

E.

The firm must limit the amount of dividends it pays according to some formula.

QUESTION 15

1. The current real rate is 0.0227% and the inflation rate is 0.0259%. What rate would you expect to see on a Treasury bill?

(Round your answer to 4 decimals)

(Please Note: percentage is expressed in decimals in all questions, e.g. 14% is expressed as 0.14%)

1. The following are some figures from Laura Sweet Company's 2020 financial statements: (in thousands)

Cash$228

AR318

Inventory331

NetPP&E6,517

AP285

Note Payable1,436

Long-termDebt2,232

CommonShares1,041

Retained Earnings2,270

Sales4,069

COGS2,562

Depreciation567

Interest546

IncomeTax77

Required:Calculate the following ratio (round your answer to four decimals, percentage should be expressed with decimals, e.g. 14.1% =0.1410)Please use textbook ratio formula to calculate. Answers calculated with varied formulas would be marked as incorrect.

Long-term Debt Ratio

QUESTION 17

1. Harvey's 2019 statement of financial position showed net fixed assets of $2,585,961 million, and the 2020 statement of financial position showed net fixed assets of $4,987,550 million. The company's 2020 statement of comprehensive income showed a depreciation expense of $379,540. What was net capital spending in 2020?(Round your answer to the nearest dollar)

QUESTION 18

1. You are shopping for GIC investment. You want to earn an effective interest rate of 0.065% that compound 5times per year. What APR you are looking for?

(Round your answer to 4decimals)

(Please Note: percentage is expressed in decimals in all questions, e.g. 14% is expressed as 0.14%)

QUESTION 19

1. When a firm initially acquires debt to help finance its operations, it is said that the firm is:

A.

Increasing its marketability.

B.

Increasing its operating cash flows.

C.

Employing financial leverage.

D.

Increasing its liquidity.

E.

Spending its cash flow from assets.

QUESTION 20

1. Double taxation refers to which of the following scenarios?

A.

The corporation pays taxes on revenues and expenses.

B.

The corporation pays taxes on earnings, and creditors pay taxes on interest received.

C.

Both bondholders and shareholders must pay taxes.

D.

The corporation pays taxes on its earnings, and shareholders pay taxes on dividends.

E.

The corporation pays taxes on revenues and earnings.

QUESTION 21

1. Average tax rate is best described as:

A.

The total dollar value of tax that is paid.

B.

The extra tax you would pay if you earned one more dollar.

C.

Pre-payments to Canada Revenue Agency to lower tax commitments.

D.

The rate set for different tax brackets.

E.

The percentage of your income that goes to pay taxes.

QUESTION 22

1. When a corporation issues additional shares of common stock to the general public, they do so:

A.

Through a dealer in the secondary market.

B.

In the primary market.

C.

Only through the OTC market.

D.

Only through the private markets.

E.

Through a broker in the secondary market.

QUESTION 23

1. Which one of the following statements concerning a proprietorship is true?

A.

proprietor is personally responsible for 100% of the firm's liabilities.

B.

Income from a proprietorship is taxed at a lower rate than other personal income.

C.

A proprietorship can be a business jointly owned by two family members.

D.

Income from a proprietorship is taxed as a separate entity.

E.

A partial transfer of ownership is easier with a proprietorship than with a corporation.

QUESTION 24

1. Capital gains is best described as:

A.

The increase in the market value of current assets.

B.

The increase in value of shareholders' equity.

C.

The growth in value of investments that were purchased at a lower price than the amount sold

D.

The increase in the market value of long-term capital assets.

E.

The increase in value of a firm's intangible assets.

QUESTION 25

1. CCA Half-year rule is best described as:

A.

An accounting rule that is not allowed under CRA requirements.

B.

CRA's option to depreciate the asset over half of its useful life.

C.

CRA's requirement to figure CCA on only one-half of an asset's cost for its first year of use.

D.

CRS's option to value the assets at one-half of its value for the duration of use.

Question 26

A deposit of $10,000 will increase to $12,500 in 5 years. Determine the annual rate of interest of this deposit, and thencalculate the balance if you withdrawat the end of year four. Round the answer to the nearest dollar.

A.

$11,954

B.

$10,549

C.

$11,495

D.

$10,954

E.

$11,549

QUESTION 27

1. You are considering an investment project that you pay out $920 now. You will receive $210 next year, $257 in year 2, $578 in year 3 and finally $799 in year four. Your minimum return rate is 0.057%. How much this project is worth to you today? Round your answer to two decimals.

(Please note: percentage is expressed in decimals in all questions, e.g. 14% is expressed as 0.14%)

QUESTION 28

1. In 2020, Kanya Construction bought a new equipment priced $969,885. Kanya trade in the old equipment for $126,980. The new equipment qualified for a CCA class with a rate of 25%. There was no previous equipment under this class. Calculate the CCA amount that Kanya can claim in 2020. Round your answer to the nearest dollar.