Question 1

The quantitative analysis of bonds does not include the financial ratios. True or false.

Question 1 options:

True

False

Question 2

You would like to establish a fund that will be used to offer a scholarship each year to a worthy student at your alma mater. You would like the total annual award to be $5,000, with the first award to be presented next year. Your alma mater is able to invest the funds at a constant, annual, tax-free rate of 8%. How much must you donate today to fund this award? Round your answer to the nearest dollar.

Question 2 options:

A)$62,500

B)$46,296

C)$67,500

D)$51,296

Question 3

Jason wishes to be able to receive $50,000 a year upon retirement, and he expects to live for 25 years after retirement. If he can earn an average rate of return of 10% on his money after he retires, how much does he need to have accumulated at the time he retires?Assume he will make his first withdrawal one year after he retires, and round your answer to the nearest dollar.

Question 3 options:

A)$503,824

B)$627,938

C)$453,852

D)$1,250,000

Question 4

Maria has decided that she can live on $80,000 a year upon retirement, and she expects to live for thirty years after she has retired. If she can earn an average annual rate of return of 8% after she retires, what minimum amount must she have accumulated in her retirement account one year before she makes her first withdrawal in order to meet her requirement? Round your answer to the nearest dollar.

Question 4 options:

A)$1,000,000

B)$2,000,000

C)$833,910

D)$900,623

Question 5

A certain stock currently pays a dividend of $1.80 and is selling for $49.50. If the required rate of return on this stock is 14%, what is the implied expected dividend growth rate?Round your answer to the nearest tenth of a percent.

Question 5 options:

A)9.8%

B)10.4%

C)8.2%

D)none of the above