A commercial bank will loan you $17,500 for two years to buy a car. The loan must be repaid in 24 equal monthly payments. The annual interest rate on the loan is 6%. What is the amount of the monthly payments? A. $1,394.98 1. B. $688.11 C. $3,779.39 D. $775.61 Green Company's ordinary shares are currently selling at $24.00 per share. The company recently paid dividends of $1.92 per share and projects growth at a rate of 4%. At this rate, what is the share's expected rate of return? A. 4.08% 2. B. 8.00% С. 12.00% D. 8.80% 3. Archer Accounting purchased new tax software two years ago. The software is still useable, but faster, more comprehensive software is available. If Archer purchases the new software, the cost of the old software is A. a sunk cost. B. an opportunity cost. C. a terminal expense. D. an overhead expense. Which of the following best describes a firm's cost of capital? A. The average yield to maturity on debt B. The average cost of the firm's assets C. The rate of return that must be earned on its investments in order to satisfy the firm's investors D. The coupon rate on preference share 4. Colby & Company bonds pay semi-annual interest of $50. They mature in 15 years and have a par value of $1,000. The market rate of interest is 8%. The market value of Colby bonds is (round to the nearest $1)? 5. A. $1,173 B. $743 C. $1,000 D. $827
A commercial bank will loan you $17,500 for two years to buy a car. The loan must be repaid in 24 equal monthly payments. The annual interest rate on the loan is 6%. What is the amount of the monthly payments? A. $1,394.98 1. B. $688.11 C. $3,779.39 D. $775.61 Green Company's ordinary shares are currently selling at $24.00 per share. The company recently paid dividends of $1.92 per share and projects growth at a rate of 4%. At this rate, what is the share's expected rate of return? A. 4.08% 2. B. 8.00% С. 12.00% D. 8.80% 3. Archer Accounting purchased new tax software two years ago. The software is still useable, but faster, more comprehensive software is available. If Archer purchases the new software, the cost of the old software is A. a sunk cost. B. an opportunity cost. C. a terminal expense. D. an overhead expense. Which of the following best describes a firm's cost of capital? A. The average yield to maturity on debt B. The average cost of the firm's assets C. The rate of return that must be earned on its investments in order to satisfy the firm's investors D. The coupon rate on preference share 4. Colby & Company bonds pay semi-annual interest of $50. They mature in 15 years and have a par value of $1,000. The market rate of interest is 8%. The market value of Colby bonds is (round to the nearest $1)? 5. A. $1,173 B. $743 C. $1,000 D. $827
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:A commercial bank will loan you $17,500 for two years to buy a car. The loan must be repaid in
24 equal monthly payments. The annual interest rate on the loan is 6%. What is the amount of the
monthly payments?
A. $1,394.98
1.
B. $688.11
C. $3,779.39
D. $775.61
Green Company's ordinary shares are currently selling at $24.00 per share. The company recently
paid dividends of $1.92 per share and projects growth at a rate of 4%. At this rate, what is the
share's expected rate of return?
A. 4.08%
2.
В. 8.00%
С. 12.00%
D. 8.80%
3.
Archer Accounting purchased new tax software two years ago. The software is still useable, but
faster, more comprehensive software is available. If Archer purchases the new software, the cost
of the old software is
A. a sunk cost.
B. an opportunity cost.
C. a terminal expense.
D. an overhead expense.
4.
Which of the following best describes a firm's cost of capital?
A. The average yield to maturity on debt
B. The average cost of the firm's assets
C. The rate of return that must be earned on its investments in order to satisfy the firm's investors
D. The coupon rate on preference share
Colby & Company bonds pay semi-annual interest of $50. They mature in 15 years and have a
par value of $1,000. The market rate of interest is 8%. The market value of Colby bonds is (round
to the nearest $1)?
5.
A. $1,173
B. $743
C. $1,000
D. $827
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