w e present value of an annuity the column and row should be preceded by a dollar sign located in the B-column and the fourth row would be designated as 40 function can be used to find the fixed payment on a fully-amortized morgegeben D) The P to find the fath row would be cd by a dollar sig perpetuity of 600 per year will begin 3 vears from today. I want to manual retum oth would be the value or price of this perpetuity TODAY? A) 87,487 B) 68.57 ulty TODAY day. I want to 999,469 er 12) Which of the following is NOT a capital budgeting question? A) Should we buy new machinery? B) Should we issue new bonds or sell shares of stock? C) Should we acquire one of our competitors? D) Should we build a new factory? D) $10,09 15) Maximization of which of the following WOULD NOT describe the evening goal of corporate financial management? A) Wealth of the shareholders. B) Market value of equity. C) Price per share of the common stock, D) Company sales 14) Ceteris paribus, would result in a LOWER PV? A) a lower interest rate C) a higher FV B) a greater number of periods D) None of the above would result in a lower PV. 15) Your parents plan to spend $15.000 on a car for you upon graduation from college. If you will graduate in to years and your parents can earn 6.50% annually on their investment, how much money must they set aside today for your car? A) $11,660 B) $12,075 C) $14,327 D) $18,937 million to a large 16) A new CEO promises to increase company sales by 9% per year from its current level of level of $7 million. How long would it take for the new CEO to reach this goal? A) 4.73 years B) 6.49 years C) 8.33 years D) 10.64 years 17) A manufacturer of widgets sold 1,524 widgets in 2010 and 2,378 in 2018. What was the compounded) growth rate of sales over this period? A) -35.91% B) 5.72% C) 6.40% D) 7.00% 18) Assuming annual compounding a$1,000 par value zero-coupon bond with 13 years remaining until and a YTM of 8% would ha e price of A) $490.20 B) $44937 C) $408.54 D) $367.70 19 Which of the following statements is TRUE about INTEREST RATES? A The Fisher Effect illustrates the inverse relationship between real and nominal interest rates b) Ceferis paribus, the interest rates on AA rated bonds would be lower than on AAA rated bor C) Interest rates in the U.S. in the late 1970s and early 1980s were historically high because of ve maturity premiums. D) The reward for postponing consumption describes the interest rate from the point of view A-2