Westlake Ltd just paid a dividend of $2 per share, which is expected to grow at a constant rate of 6.5 percent indefinitely. The discount rate is 115 percent Calculate Westlake's current share price

Select one

a. $46.05

b. $42.60

c. 40.00

d. $41.80

Which of the following statements is correct?

Select one:

a. When the market rate (required rate of return) is higher than the coupon rate, the bond is priced at a premium. b. Current yield is the ratio of annual coupon payment divided by the par value.

c When the coupon rate is higher than the market rate (required rate of return the bond is priced at a discount

d If a bond is at a discount the coupon rate is less than the market rate required rate of return),

Which of the following statements is false?

Select one

a. Floating rate bonds provide protection against decreasing interest rates

b. Zero coupon bonds are often created when cash flow is stripped from traditional bonds. c Zero coupon bonds are deep discount bonds

d. The nominal interest rate is determined by the real interest rate and the expected rate of inflation

Which of the following statement is incorrect?

Select one

a. The longer the time period, the smaller the present value, given the future value and the interest rate constant

b. The discount factor is the reciprocal of the compound factor

c. The greater the interest rate e greater the present value, given the future value and the time period constant

d. A future dollar is always less valuable than a dollar today it interest rates are positive