5 1) The firm's purchase of real assets is also referred to as the:A) capital structure decision.B) CFO decision.C) financing decision.D) capital investment decision.2) A Wall Street Journal quotation for a company has the following values: Div: $1.12, PE:18.3, Close: $37.22. Calculate the approximate dividend payout ratio for the company.A) 18 percentB) 35 percentC) 45 percentD) 55 percent3) The ultimate financial goal of a corporation is to:A) minimize stockholder risk.B) maximize profit.C) maximize the value of the corporation to the stockholders.D) increase size of the firm.4) A four-year bond has an 8 percent coupon rate and a face value of $1,000. If the currentprice of the bond is $878.31, calculate the yield to maturity of the bond (assuming annualinterest payments).A) 8 percentB) 10 percentC) 12 percentD) 6 percent5) A project requires an investment of $900 today. It can generate sales of $1,100 per yearforever. Costs are $600 for the first year and will increase by 20 percent per year. (Assume allsales and costs occur at year-end [i.e., costs are $600 @ t= 1].) The project can be terminatedat any time without cost. Ignore taxes and calculate the NPV of the project at a 12 percentdiscount rate.A) $65.00B) $57.51C) $100.00D) It cannot be calculated as g>r.6) World-Tour Co. has just now paid a dividend of $2.83 per share (Divo); its dividends arexpected to grow at a constant rate of 6 percent per year forever. If the required rate of returon the stock is 16 percent, what is the current value of the stock, after paying the dividend?A) $70B) $56C) $30

Answered: Image /qna-images/answer/fc6ad2a4-96e9-4306-8e3a-a012e2619603.jpg

5) A project requires an investment of $900 today. It can generate sales of $1,100 per year forever. Costs are $600 for the first year and will increase by 20 percent per year. (Assume all sales and costs occur at year-end [i.e., costs are $600 @ t = at any time without cost. Ignore taxes and calculate the NPV of the project at a 12 percent discount rate. 1].) The project can be terminated A) $65.00 B) $57.51 C) $100.00 D) It cannot be calculated as g> r.

5) A project requires an investment of $900 today. It can generate sales of $1,100 per year forever. Costs are $600 for the first year and will increase by 20 percent per year. (Assume all sales and costs occur at year-end [i.e., costs are $600 @ t = at any time without cost. Ignore taxes and calculate the NPV of the project at a 12 percent discount rate. 1].) The project can be terminated A) $65.00 B) $57.51 C) $100.00 D) It cannot be calculated as g> r.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Exercise: 01 Issue a promissory note: ⑴Amount ￡3,026.00 ⑵Date and place of issue 8/August/2009，Guangzhou, China ⑶Tenor At 90 days after date ⑷Maker Guangdong Imp. & Exp. Co., Guangzhou ⑸Payee Chemicals Import & Export Company London ⑴Drawer Thames Enterprises Ltd., London ⑵Drawee The National Westminster Bank Ltd., London ⑶Payee Philips Hong Kong ⑷Date and place of issue 07/01/2001，London ⑸Amount GBP79,014 Exercise: 02 Issue a check:
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Businesses that offer repayment plans for purchases are required by law to disclose the interest rate. But that dosent mean they let you go out of there way to let you know what it is. you have to read all the paper work. Find the interest rate for the follwing purchase. For a 312 square- foot family room, you choose carpert that costs $1.44 per square foot. The tax rate is 6.1% and youre offered 24 payemnts of 27.61. Round to one decimal, if necessary.