The expected dividend next year is $2.35, and dividends are expected to grow at 3.5% forever. If the discount rate is 9.8%, what is the value of this promised dividend stream?

Select one:

a.17.70

b.27.30

c.39.35

d.30.37

e.37.30

Suppose you want to earn an effective rate of 8.25% and you are looking at an account that compounds on a quarterly basis. What APR must they pay?

Select one:

a.7.21

b.8.25

c.8.10

d.8.75

e.8.01

Your firm has just identified two projects that offer different cash flow arrangements. The first project ensures a cash flow of $87,000 per year for the next two years. The second project offers $67,000 per year for the next two years received at the end of each year, along with a $32,000 onetime payoff immediately. If the interest rate is, 11.5 percent compounded monthly, what would be the payoffs for projects 1 and 2 respectively.

Select one:

a.A=135046.3& B=136791.5

b.A=146791.5 & B=135046.3

c.A=136791.5 & B= 135046.3

d.A=145046.3 & B=146791.5

e.A=146791.5 & B= 145046.3

Consider a bond with a 7.45% annual coupon rate, 17 years to maturity and a par value of $1,000. The current price is $978.09.What will be the YTM of this bond?

Select one:

a.6.66

b.8.66

c.9.66

d.5.66

e.7.66