This question will require you to use Excel's IRR function

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This question will require you to use Excel’s IRR function. A firm
invests $200,000 in a project today. It receives $20,000 a year from now, $50,000 two years from now, and $195,000 three years from now and nothing more. What is the IRR of the project?
The format of Excel’s IRR function is =IRR(aX:aY,Z)
Where aX:aY are cells aX to aY which have cash flows entered into them. The initial investment is a negative cash flow so it should have a negative sign.
Z is a “guess” IRR, usually you can set to 0.1 (which is 10%).
Answer should be a number given as a %. That is, for example 3.18% should be answered as 3.18 rather than 3.18% or 0.0318

 
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Two analysts are calculating the value of the same stock

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Two analysts are calculating the value of the same stock. They projections
for the stock’s future dividends are the same. They also use the same discount rate.
However, one analyst discounts future dividends to calculate the price, whereas the other analyst discounts next periods dividends and price (again based on future dividends) to calculate the price.
The prices calculated by the two analysts will be:
Question 6 options:

different only if the dividends are increasing with time.

different only if the dividends are decreasing with time.

different or the same, there is not enough information to decide.

the same.

 
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Which of the following statements is FALSE?

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Which of the following statements is FALSE?
Question 7 options:

The
“clean price” of a bond is always less than or equal to the “dirty price”.

A “Sinking Fund Provision” requires the firm to repay the entire issue at one time.

A cap on the interest rate for floaters is an example of an embedded option in a bond.

In a margin buying arrangement part of the purchase money is borrowed by the buyer from the broker.

 
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Suppose a stock will pay $10 per share dividend in one year's time.

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Suppose a stock will pay $10 per share dividend in one year’s time.
The dividend is projected to grow at 8% the following year, and then 4% per year indefinitely after that.
To clarify, dividend at beginning of year 1 (that is, one year from today) is:
$10
Beginning of year 2 (2 years from today) is:
$10 * 1.08
Beginning of year 3 (3 years from today) is:
$10 * 1.08 * 1.04
and a 4% rate of growth every year after that.
The required return is 6%. What is the stock’s price today?

 
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