Question $21$

A company recently recorded earning per share of $$5.$ The company has the payout policy of $40\%.$

If the growth rate for the dividend payment is $10\%,$ the dividend per share for the next year is estimated to be

a$\mathrm{.}2\mathrm{.}2$

b$.3\mathrm{.}2$

c$.3$

d$.$ none of the above

Question $22$

The following statements are true for the bond valuation Except for:

a$.$ There is negative relationship between market

interest rate $($i$)$ and bond price

b$.$ The long the maturity the lower the bond price is$.$

c$.$ The higher the market interest rate the lower the bond price

d$.$ The higher the coupon interest rate the lower the bond price is

Question$23$

The following statement $($s$)$ true for the bond valuation

a$.$ The bond with coupon rate of the $10\%$ and market interest rate of $10\%$ will be sold at par value $($face value$)$

b$.$ The bond with coupon rate of the $10\%$ and market interest rate of $11\%$ will be sold at discount

c$.$ The bond with coupon rate of the $10\%$ and market interest rate of $9\%$ will be sold at discount

$d.$ Both answer a and $c$ are correct

Question $24$

A bond with $5$ year to maturity with the face value of $$1000$ and the coupon interest rate of $10\%.$ If the market interest rate for similar bond are yielding $10\%,$ the bond price is estimated to be:

a$.1000$

b$.$ More than $1000$

c$.$ Less than $1000$

$d.$ None of the answer is correct.

Question $25$

The following statements are true except

a$.$ A project is accepted if NPV is greater than zero

b$.$ A project is rejected if NPV is less than zero

c$.$ A project is rejected if project's IRR less than cost of capital

d$.$ A project's NPV is greater than zero the project IRR should less than cost of capital

e$.$ All of the above are correct