Question
You can invest $8,000 in a fund that will pay nothing in the first two years, then $900 at the end of the next three
You can invest $8,000 in a fund that will pay nothing in the first two years, then $900 at the end of the next three years, and finally $8,900 at the end of year six. What is the promised rate of return for this investment?
Question 13 options:
| A 6.98% |
| B 11.25% |
| C 9.93% |
| D 7.80% |
| E 8.61% |
You have taken out a $450,000 mortgage that has a quoted rate of 5.7% (compounded semi-annually) and requires end-of-month payments over 20 years. What is the monthly payment for this mortgage?
Question 14 options:
| $3,130 |
| $3,147 |
| $3,138 |
| $3,159 |
| $3,115 |
ABC Lettering has a fixed asset turnover rate of 1.1 and a total asset turnover rate of .84. XYZ Lettering has a fixed asset turnover rate of 1.2 and a total asset turnover rate of .96. Both companies have similar operations. Compared to XYZ Lettering, ABC Lettering is using its fixed assets ______ and its total assets _______.
Question 15 options:
| less efficiently, less efficiently |
| more efficiently, more efficiently |
| cannot be determined |
| less efficiently, more efficiently |
| more efficiently, less efficiently |
A firm earns $3.00 per share after-tax and distributes all of its earnings to its shareholders in the form of a dividend. The corporate tax rate is 25%, the personal tax rate on dividend income is 15%, and the personal tax rate on ordinary income is 35%. How much money per share will an investor receive after all taxes are paid (assuming the investment is held in a non-registered account)?
Question 16 options:
| $2.25 |
| $2.10 |
| $1.95 |
| $2.40 |
| $2.55 |
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