Question 4 Not yet answered Points out of 1.00 '7 Flag question ABC Corp enjoys growth in earnings only to the extent that it retains earnings. Its earnings growth is 10% and retained earnings ratio is 40%. What is its return on retained earnings? Choose the nearest answer, Q a. 4% Q b. 30% Q c 10% Q d. 40% Q e. 25% Question 5 Not yet answered Points out of 1.00 '9 Flag question Anna has a business opportunity that costs $25,000 at time 0. It returns $15,000 and time 1 and $20,000 at time 2. All these gures are in nominal terms. Anna's real discount rate is 3.8%, and the ination rate is 4%. What is the real NPV of the business opportunity at time 0? Choose the nearest answer. Q a. 7,900 Q b. 6,000 Q c 4000 Q 0. 12,000 Q e. 8,000 Question 6 Not yet answered Points out of 1.00 \\V Flag question A bond pays a $50 coupon in 3 months and another $50 coupon in 9 months, when it matures and also pays back its $1 0,000 face value. If the APY is 3%, what is the price of the bond today? Choose the nearest answer. Q a. $6300 Q b. $9700 Q 0 $10,680 Q d. $9900 Question 1 Not yet answered Points out of 1.00 V Flag question A share of GAUCHO pays a dividend of $6 in every year, beginning one year from today. The interest rate is 4%. Using the dividend/sales approach, what should be the price of GAUCHO today? Choose the nearest answer. FQ'a. $100 (Jib. S6 ;'c. $550 r? d, 3150 Question 2 Not yet answered Points out of 1.00 \\'7 Flag question Freddie Mac owns 3 mortgages, each of which will pay off $500,000 in present value 70% ofthe time and SO 30% of the time. The payoffs of the three mortgages are independent, Freddie Mac issues a CMO where the owner of the equity tranche receives $500,000 if and only if no mortgage defaults (that is, so long as all mortgages pay back $500,000), What is the expected value of this CMO? Choose the nearest answer. j'a. $495000 3th. $170000 Q'c. sssaooo \"rd, S15u000 Question 3 Not yet answered Points out of 1.00 \\V Flag question Chloe holds a twoyear TIPS bond with a 35000 real par value, and a 1% real coupon. Ination is 5% the rst year and 3% the second year. What will be her nominal payment in the second year? Choose the nearest answer. \"3's. $5050 1;; b, $5200 "'5 C. $5460 m d, $5300