Transcribed image text: 1. You get a twenty-year amortized loan of $100,000 with a 5% annual interest rate. What are the annual payments? a. $8,718 b. $37,689 c. $4,762 d. $8,024 2. To maintain shareholders, a company pays some dividend every quarter, regardless of earnings. This is an example of: a clientele dividend theory b. residual dividend theory c. signaling dividend theory d. bird-in-the-hand dividend theory 3. As a gift from your parents, you just received $50,000 for your education. You can earn an annual rate of 8% on your investments. How much can you withdraw each year (end of year) for the next 4 years? a. $12,500 b. $11,096 c. $11,750 d. $15,096 4. The risk free rate of return is 5 percent, the market risk premium is 10 percent, and the stock of ABC has beta of 1.5. Last year, ABC earned $10 per share in earnings and 70 percent of earnings were retained by the firm - the remaining amount was paid out as dividends. Dividends are expected to grow by 2 percent. What's the intrinsic value of ABC's stock? a. $15,6 b. $17.0 c. $6.4 d. $18.6