You wish to retire in 35 years time and draw an annual income of $30,000 at the end of each year for a period of 30 years. How much money will you need to invest now (to the nearest dollar) if you can earn 8% on your investments.

Group of answer choices

$111,750

$22,842

$26,521

$337,734

You currently own 50 shares of stock in BF Inc . The stock currently trades at $80 a share. The company is contemplating a 2-for-1 stock split. Which of the following best describes your position after the proposed stock split takes place?

Group of answer choices

You will have 25 shares of stock, and the stock will trade at or near $80 a share.

You will have 100 shares of stock, and the stock will trade at or near $80 a share.

You will have 100 shares of stock, and the stock will trade at or near $40 a share.

You will have 25 shares of stock, and the stock will trade at or near $160 a share.

The net present value (NPV) method differs from the internal rate of return (IRR) method in that:

Group of answer choices

the IRR method finds the rate of return that gives a project a zero NPV whereas the NPV method discounts the cash flows by the required rate of return

the IRR method provides better conclusions for mutually exclusive projects

the NPV method discounts cash flows using the risk-free rate of return and the IRR method does not.

both methods always yield similar conclusions for mutually exclusive projects

Consider a portfolio consisting of 2 assets, a share with a beta of 1.02 and market risk premium of 12%, and a risk-free asset with an expected return of 3%. If the portfolio weighting is 65% of shares and 35% of the risk-free asset, what is the expected return on the portfolio?

Group of answer choices

8.97%

10.96%

9.4%

16.18%

Generally the announcement of a decrease in dividends is interpreted by investors as:

Group of answer choices

Bad news and the share price decreases

Good news but does not affect the share price

A non-event and does not affect the share price

Good news and the share price increases