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What is the present value of a perpetuity that pays $10,000 annually at an annual discount rate of 5%? If a company has a debt-to-equity

  1. What is the present value of a perpetuity that pays $10,000 annually at an annual discount rate of 5%?

  2. If a company has a debt-to-equity ratio of 0.5, a cost of debt of 8%, and a cost of equity of 12%, what is its weighted average cost of capital (WACC)?

  3. If a company has a net income of $1,000,000, a dividend payout ratio of 40%, and 100,000 shares outstanding, what is its earnings per share (EPS)?

  4. What is the future value of an annuity that pays $5,000 annually for 10 years at an annual interest rate of 8%?

  5. What is the value of a 5-year bond with a face value of $1,000, a coupon rate of 5%, and a yield to maturity of 6%?

  6. If a company has a profit margin of 20%, an asset turnover ratio of 1.5, and a total asset value of $10,000,000, what is its return on assets (ROA)?

  7. If a company has a dividend yield of 3%, a dividend growth rate of 5%, and a stock price of $50, what is its cost of equity?

  8. If a company has a beta of 1.2, a risk-free rate of 3%, and a market risk premium of 7%, what is its cost of equity using the CAPM?

  9. If a company has a price-to-earnings (P/E) ratio of 20 and earnings per share (EPS) of $5, what is its stock price?

  10. What is the value of a stock that pays an annual dividend of $2 per share, has a dividend growth rate of 4%, and a required rate of return of 10%?

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