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WinesDirect Ltd generated an EPS this year of $1.20 and paid a dividend of $0.70 per share. WinesDirect has recently been able to generate a

  1. WinesDirect Ltd generated an EPS this year of $1.20 and paid a dividend of $0.70 per share. WinesDirect has recently been able to generate a return of 9.25% p.a. on its (book) equity base. If these numbers are assumed to be fairly stable, what will be WinesDirect's expected future growth rate?

  1. 9.25%
  2. 4.80%
  3. 4.25%
  4. 3.85%
  5. None of the above

  1. What is the future value of a $3,000 invested for 20 years at an interest rate of 12% p.a. compounded quarterly? (Rounded to the nearest dollar.)

  1. $28,923
  2. $29,923
  3. $30,923
  4. $31,923
  5. None of the above

  1. Tricky Traps manufactures an innovative mouse trap. Sales this year are $650,000. The company expects its sales to go up to $900,000 in six years. What is the expected annual average growth rate in sales for this company? (Rounded to the nearest percent).

  1. 9%
  2. 8%
  3. 7%
  4. 6%
  5. None of the above

  1. If you require a 12% rate of return, how much would you pay now for a bond with a face value of $6,000, pays $160 interest each year and matures in 10 years' time? (Round your answer to the nearest $10).

  1. $2,840
  2. $2,850
  3. $2,860
  4. $2,870
  5. None of the above

  1. Eclipse Textile Company Ltd generated an EPS this year of $4.30 and paid a dividendof $1.65 per share. Eclipse Textile Company has recently been able to generate a return of 13.50% p.a. on its (book) equity base. If these numbers are assumed to be fairly stable, what will be Eclipse Textile Company's expected future growth rate?

  1. 9.25%
  2. 8.32%
  3. 7.32%
  4. 7.58%
  5. None of the above

** Please show the all mathematical steps and the Financial Calculator step if possible, Thanks.

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