Best writers. Best papers. Let professionals take care of your academic papers

Order a similar paper and get 15% discount on your first order with us
Use the following coupon "FIRST15"
ORDER NOW

Quiz NumberQuestion1A company has paid $2 per share

/in /by

Quiz NumberQuestion1A company has paid $2 per share in dividends for the past several years and plans to continuindefinitely. If an investor’s required return is 13%, what is the most she should pay for a sharstock?A:$15.38B:$20.00C:$22.60D:$26.13E:$65.002Bond mutual funds offer the following advantages over direct investment in bonds EXCEPT:A:Better diversificationB:Transaction cost economiesC: Buy and sell individual bonds at individual investor’s discretionD: Reinvestment of intermediate cash flowsE:Better liquidity3A $1,000 par value bond with a 5% coupon that pays interest semiannually and matures in 2has a current price of $977. What is the annualized yield to maturity?A:3.0%B:4.0%C:5.0%D:6.0%E:7.0%4An immunization strategy protects a portfolio from:A:Interest rate riskB:Default riskC:Liquidity riskD:Prepayment riskE:Event risk51. Market multiple methods include valuations based on all of the following EXCEPT:A:Price/earningsB:Price/free cash flowC:Price/dividendsD:Price/salesE:All of the above are acceptable market multiples6Factors that should be considered in taking a stock option position include:A:The dividend paid on the underlying stockB:The volatility of the underlying stockC: The time to expiration
Background image of page 1
View the Answer
D: The anticipated direction of market movementE:All of the above are relevant factors in the option decision7A three-year project costs $50,000 and returns $20,000 the first year, $30,000 the second yeathe third year. If the required return is 10.0%, what is the Net Present Value (NPV)?A:$11,758B:$12,547C:$25,000D:$61,758E:$62,5478Disadvantages of investing in the futures market include all of the following EXCEPT:A:Market is extremely volatileB:Daily mark-to-marketC: ClearinghouseD: Possibility of frequent margin callsE:Possibility of losing more than the original investment9A portfolio has a standard deviation of 22%. If the risk-free rate is 3.5%, the expected return oportfolio is 12%, and the standard deviation of the market portfolio is 25%, what is the requiremarket portfolio?A:7.48%B:10.98%C:12.00%D:13.16%E:14.06%10Factors that should be considered in the purchase of a stock includes all of the following EXCA:DividendB:Growth potentialC: Quality of firm’s managementD: Coupon rate on the firm’s bondsE:Price
Background image of page 2
Step-

 
Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"