Q1/ A stock that is priced $20, pays $1 dividend. What is its dividend yield?

Select one:

a. 5%

b. 10%

c. $1

d. depends on discount rate

Q2/ Amount of cash from earnings that company needs for growth, is a part of free cash flow (FCF)?

Select one:

a. depends on dividend the company pays

b. yes

c. not enough information

d. No

Q3/ In deciding the NPV of a project, sunk costs needs to be:

Select one:

a. Depends on ROE

b. depends on opportunity cost

c. included

d. ignored

Q4/ IRR stands for:

Select one:

a. Interest real rate

b. Investment rate of return

c. Internal rate of return

d. none of the above

Q5/ A bond's yield to maturity (YTM), is the same as its:

Select one:

a. NPV

b. coupon

c. price

. IRR