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Please teach me how get those answer Thank you Par value of 12% preference share is $3. Market expectation is 14% from this preference share.

Please teach me how get those answer Thank you

Par value of 12% preference share is $3. Market expectation is 14% from this preference share. What would be the intrinsic value of this preference share?

Group of answer choices

A $3.50 A$2.57 A$3.06 A$3.00

Market is expecting 13 per cent return from the ordinary share of a company. Investors are expecting $0.70 dividend per share from this company in next year. It is also predicted that the dividend for this company will grow at a constant rate of 4 per cent forever. What current price is expected for this ordinary share?

Group of answer choices

A$8.09 A$7.78 A$17.50 A$8.79

A company issued $1,000 par value bond at 6% coupon rate. The bond will mature in 6 years. Current market yield for this bond is 7%. If the coupon is paid semi-annually, what would be the value of this bond?

Group of answer choices

A$973.36 A$951.68 A$952.33 A$682.29

Which one is a justifiable criticism of discounted payback period method of project evaluation?

1 Group of answer choices

2 Biased against the liquidity of the project

3 Does consider all future cash flows of the project

4 Biased against long-term projects

5 Ignores the time value of money

Which one is an incorrect statement?

1 Group of answer choices

2 Profitability index is a ratio of PV of Future Cash Flows and Investment

3 Profitability index ranking is better than NPV ranking in capital rationing

4 Profitability index value is always more than 1 for positive NPV projects

5 Ranking of projects by profitability index is similar to that of NPV

Which one is a correct statement?

1 Group of answer choices

2 None of the others

3 Preference share is known as perpetuity

4 No growth ordinary share dividend payment is similar to annuity

5 Share valuation is more uncertain than bond valuation

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