Show "the math" of the future value of the following: You deposit $1,000 today in the bank. You will leave it there 5 years. You can earn 12%. O FV = $1000 * 1.1245 O FV/1.1245 O PV = 1000 * 1.1245 O PV = 1000/1.12^5 The infinite timeline of the cash flows from this dividend paying stock is shown below. True or False. Just paid a dividend of $1.00. Dividends are growing at 10% forever. Investors require 12%. 1 0 $1.00 1 $1.10 2 $1.21 ... ... infinity Dinfinity O True False Show the "math" of the following bond. You are trying to find the PRICE of the bond. Coupon is 6%, paid semi-annually. YTM is 8%. Bond matures in 5 years. Par is $1,000. O PV = 30/(1.04)^1 + ....1030/(1.04)^10 O PV = 60/1.08^1 + ....1060/(1.08)^10 O PV = 60/1.08^1 + ....1060/(1.08)^5 O PV = 30/1.04^1 + .....1030/(1.04)^5 The accept decision rule for IRR is: O Accept if IRR is greater than or equal to WACC. O Accept if IRR is greater than or equal to $0.00. O Accept if IRR is greater than or equal to 1.00. O Accept if IRR is greater than or equal to the risk-free rate