Q1:

You have $1,000.00 in an account that earns 8.80% APR quarterly. How much will this be worth 10 years from today?

A/ $2,365.97

B/ $2,324.28

C/ $2,388.01

D/ $2,403.17

Q2:

A common stock has a current dividend of $0.65, an associated return on equity of 10.00% with a divdend payout ratio of 40.00%. Assuming a discount rate of 12.00%, what is the price of the stock?

A/ $8.13

B/ $8.45

C/ $11.48

D/ $10.83

Q3:

If the return on assets (ROA) is 24% and the total asset turnover (TATO) is 2.0, what is the net profit margin (NPM)?

A/ 12.00%

B/ 224.00%

C/ 10.00%

D/ 48.00%

Q4:

Which is an example of a future value annuity due?

A/ CF (1 + k)^2 + CF (1 + k)^1 + CF (1 + k)^0

B/ CF (1 + k)^3 + CF (1 + k)^2 + CF (1 + k)^1

C/ CF (1 + k)^3 + CF (1 + k)^2 + CF (1 + k)^1

D/ CF (1 + k)^2 + CF (1 + k)^1 + CF (1 + k)^0

Q5:

The dividend growth rate is equal to:

A/ One minus the dividend payout ratio

B/ ROE (return on equity) multiplied by the dividend payout ratio

C/ ROE (return on equity) assuming all earnings are paid as dividends

D/ (Anticipated dividend Current dividend) minus one