65) At 8% compounded annually, how long will it take $750 to double?
A. 9 years
B. 48 months
C. 12 years
D. 6.5 years
The answer is C. 9 yearsAuto answered|Score .9183|bonaxle|Points 771|User:
66) The common stockholders are most concerned with:
A. the risk of the investment.
B. the size of the firm’s beginning earnings per share.
C. the spread between the return generated on new investments and the investor’s required rate of return.
D. the percentage of profits retained.
B. The size of the firm's beginning earnings per share.Auto answered|Score .9138|nikkidonker|Points 100|User:
67) Which of the following best represents operating income?
A. Income from capital gains
B. Earnings before interest and taxes
C. Income from discontinued operations
D. Income after financing activities
operating income is income from capital gain. Auto answered|Score .8348|rachell028|Points 992|User:
68) Mortgage bonds:
A. usually pay little or no interest.
B. are secured by a lien on real property.
C. can only be issued by financial institutions.
D. are a type of debenture.
C. Are a type of debentureAuto answered|Score .9341|MrG|Points 2522|User:
69) Tri State Pickle Company preferred stock pays a perpetual annual dividend of 2 1/2% of its par value. Par value of TSP preferred stock is $100 per share. If investors’ required rate of return on this stock is 15%, what is the value of per share?
Tri State Pickle Company preferred stock pays a perpetual annual dividend of 2 1/2% of its par value. Par value of TSP preferred stock is $100 per share. If investors? required rate of return on this stock is 15%, what is the value of per share?
B. [ $16.67 ] Auto answered|Score .9716|selymi|Points 9946|User:
70) Bell Weather, Inc. has a beta of 1.25. The return on the market portfolio is 12.5%, and the risk-free rate is 5%. According to CAPM, what is the required return on this stock?
Answer is 14.37% Auto answered|Score .8658|samn|Points 3054|User:
71) What is the yield to maturity of a nine-year bond that pays a coupon rate of 20% per year, has a $1,000 par value, and is currently priced at $1,407? Round your answer to the nearest whole percent and assume annual coupon payments.
Since the coupon rate is 20% per year and par is 1000
coupons are $200
so the present value
stream of payments is ? $200(1+i)^(-n) for n=1 to 9 plus $1000(1+i)^(-9)
i is the rate as a decimal and it is the value of this expression nearest [ [ [ to $1,407
I'm not sure the correct response is there because i=0.062 gives this result. However we ignore
the return of the $1,000 9 years from now then i=0.052
produces a $1408.98 value for the stream of payments.
B. 5% ] ] ] Auto answered|Score .9176|tiffanylatrelle|Points 108|User:
Your company is considering an investment in a project which would require an initial outlay of $300,000 and produce expected cash flows in Years 1 through 5 of $87,385 per year. You have determined that the current after-tax cost of the firm’s capital (required rate of return) for each source of financing is as follows:
Cost of debt 8%
Cost of preferred stock 12%
Cost of common stock 16%
Long-term debt currently makes up 20% of the capital structure, preferred stock 10%, and common stock 70%. What is the net present value of this project?
All Categories|No Subcategories|Not Answered|1/21/2013 3:22:02 PM