121 The seling price of the stock equals: (a) 22 lei (b) 24 lei |(c) 26 lei (d) 30 lei (3-4) The table below presents the cash-flows associated to an investment project: Year 0. Cash-flow -1000 700 800 [3] For a cost of capital of 10% the NPV equals: (a) 297.52 (b) 500 (c) 363.64 (d) 388.43 [4] The internal rate of return of the project is: (a) 28% (b) 31.05% (c) 34% (d) 36.1%

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2.1 3 .4.L:5.1.6.1
7.1. 8
9.1 10
| 11. 12
13
14.
15.I
For questions (1-6) bold the correct answer or complete with your result if none is correct.
(1-2) The expected return on a stock with a current price of 20 lei is 16%. The corporation is expected
to deliver a dividend of 1.2 lei per share.
[1] The dividend yield expected by the investor equals:
(a) 4%
(b) 6%
(c) 8%
(d) 12%
[2] The selling price of the stock equals:
(a) 22 lei
(b) 24 lei
(c) 26 lei
(d) 30 lei
(3-4) The table below presents the cash-flows associated to an investment project:
Year
1.
2.
Cash-flow
-1000
700
800
[3] For a cost of capital of 10% the NPV equals:
(a) 297.52
(b) 500
(c) 363.64
(d) 388.43
[4] The internal rate of return of the project is:
(a) 28%
(b) 31.05%
|(c) 34%
(d) 36.1%
ndord
Transcribed Image Text:-installed, but first we need to close some apps. Update now 2.1 3 .4.L:5.1.6.1 7.1. 8 9.1 10 | 11. 12 13 14. 15.I For questions (1-6) bold the correct answer or complete with your result if none is correct. (1-2) The expected return on a stock with a current price of 20 lei is 16%. The corporation is expected to deliver a dividend of 1.2 lei per share. [1] The dividend yield expected by the investor equals: (a) 4% (b) 6% (c) 8% (d) 12% [2] The selling price of the stock equals: (a) 22 lei (b) 24 lei (c) 26 lei (d) 30 lei (3-4) The table below presents the cash-flows associated to an investment project: Year 1. 2. Cash-flow -1000 700 800 [3] For a cost of capital of 10% the NPV equals: (a) 297.52 (b) 500 (c) 363.64 (d) 388.43 [4] The internal rate of return of the project is: (a) 28% (b) 31.05% |(c) 34% (d) 36.1% ndord
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