Question 36

The market value of a firms equity is frequently called:

Select one:

a. Market capitalization.

b. Total financing.

c. Debt-equity reconciliation.

d. Debt-equity consolidation.

e. Total assets.

Question 37

Etling Inc.'s dividend is expected to grow at 7% for the next two years and then at 3% forever. If the current dividend is $3 and the required return is 15%, what is the price of the stock?

Select one:

a. $25.54

b. $26.15

c. $29.45

d. $25.10

e. $27.68

Question 38

An operating lease is usually a shorter-term lease in which the lessor is responsible for insurance, taxes, and upkeep.

Select one:

True

False

Question 39

A typical car loan is an example of an amortized loan.

Select one:

True

False

Question 40

You are considering a project that costs $150 and has expected cash flows of $55, $60.50, and $66.55 over the next three years. If the appropriate discount rate for the project's cash flows is 10%, what is the net present value of this project?

Select one:

a. $0.00

b. $0.71

c. $64.10

d. The NPV is negative

e. $19.79