Question 1

How abundantly did you borrow for your branch if your monthly hypothecation reimbursement for a 30 year hypothecation at 6.65% APR is \$1,700?

 [removed] A. \$249,235 [removed] B. \$218,080 [removed] C. \$264,812 [removed] D. \$202,503 [removed] E. \$233,658 [removed] F. \$186,926

6 points

Question 2

Shady Rack Inc. has a association ungathered delay 10 percent coupon, remunerated semiannually, and 15 years to ripeness. The negotiate expense of the association is \$1,039.55. Calculate the association’s furnish to ripeness (YTM). Now, if due to shifts in negotiate conditions, the negotiate claimd YTM suddenly increases by 2% from your congenial YTM, what allure be the percent shift in the negotiate expense of the association?

 [removed] A. -17.76% [removed] B. -15.66% [removed] C. -14.01% [removed] D. -14.87% [removed] E. -16.39% [removed] F. -17.09%

6 points

Question 3

Sanaponic, Inc. allure pay a dividend of \$6 for each of the proximate 3 years, \$8 for each of the years 4-7, and \$10 for the years 8-10.  Thereafter, starting in year 11, the community allure pay a firm dividend of \$8/year unwanderingly.  If you claim 18 percent admonish of repay on bombardments in this promote tabulate, how abundantly is this accumulation desert to you?

 [removed] A. \$37.77 [removed] B. \$55.99 [removed] C. \$45.68 [removed] D. \$50.50 [removed] E. \$41.46 [removed] F. \$34.54

6 points

Question 4

Your claimd admonish of repay is 12%. What is the net offer appraise of a design delay the forthcoming specie flows?

 Year 0 1 2 3 4 5 Cash Flow -750 450 350 150 125 -100 [removed] A. 15.56 [removed] B. 48.68 [removed] C. 26.33 [removed] D. 60.27 [removed] E. 72.15 [removed] F. 37.37

6 points

Question 5

Please use the forthcoming counsel for this and the forthcoming two questions.

BB Lean has attested two mutually restricted designs delay the forthcoming specie flows.

 Year 0 1 2 3 4 5 Cash Flow Design A -52,000.00 18,000.00 17,000.00 15,000.00 12,000.00 9,000.00 Cash Flow Design B -52,000.00 17,800.00 10,000.00 12,000.00 17,000.00 22,000.00

The community claims a 11.5% admonish of repay from designs of this promote.

What is the NPV of design A?

 [removed] A. 972.57 [removed] B. 5,972.87 [removed] C. 417.37 [removed] D. 1,395.64 [removed] E. 1,624.90 [removed] F. 5,180.35

6 points

Question 6

What is the IRR of design B?

 [removed] A. 12.06% [removed] B. 14.68% [removed] C. 13.90% [removed] D. 13.05% [removed] E. 12.94% [removed] F. 20.80%

6 points

Question 7

At what remittance admonish would you be careless betwixt these two designs?

 [removed] A. 13.5250% [removed] B. 14.7386% [removed] C. 34.1306% [removed] D. 15.8950% [removed] E. 3.1177% [removed] F. 26.0812%

6 points

Question 8

A association delay a countenance appraise of \$1,000 has annual coupon reimbursements of \$100. It was issued 10 years ago and has 7 years retaining to ripeness. The popular negotiate expense for the association is \$1,000. Which of the forthcoming is true: I. Its YTM is 10%. II. Bond’s coupon admonish is 10%. III. The association’s popular furnish is 10%.

 [removed] A. III  Only [removed] B. I, II, and III [removed] C. I, III  Only [removed] D. II, III  Only [removed] E. I  Only [removed] F. I, II  Only

6 points

Question 9

Riverhawk Corporation has a association ungathered delay a negotiate expense of \$1,050.00.  The association has 10 years to ripeness, pays divide semiannually, and has a furnish to ripeness of 9%.  What is the association’s coupon admonish?

 [removed] A. 12.84% [removed] B. 9.77% [removed] C. 10.54% [removed] D. 12.08% [removed] E. 11.31% [removed] F. 13.61%

6 points

Question 10

You purchased a accumulation for \$24 per divide. The most new dividend was \$2.50 and dividends are expected to amplify at a admonish of 8% indefinitely. What is your claimd admonish of repay on the accumulation?

 [removed] A. 17.00% [removed] B. 17.64% [removed] C. 18.38% [removed] D. 21.50% [removed] E. 20.27% [removed] F. 19.25%

6 points

Question 11

Sales and produce of Growth Inc. are expected to amplify at a admonish of 25% per year for the proximate six years but the community allure pay no dividends and reinvest all hues. After that, the dividends allure amplify at a firm annual admonish of 7%. At the end of year 7, the community plans to pay its primeval dividend of \$4.00 per divide. If the claimd repay is 16%, how abundantly is the accumulation desert today?

 [removed] A. \$22.80 [removed] B. \$15.96 [removed] C. \$13.68 [removed] D. \$25.08 [removed] E. \$18.24 [removed] F. \$20.52

6 points

Question 12

Apple Sink Inc. (ASI) proportioned remunerated a dividend of \$2.50 per divide.  Its dividends are expected to amplify at 26% a year for the proximate two years, 24% a year for the years 3 and 4, 16% for year 5, and at a firm admonish of 6% per year thereafter.  What is the popular negotiate appraise of the ASI’s accumulation if companies in this promote tabulate feel a 16% claimd admonish of repay?

 [removed] A. \$54.27 [removed] B. \$56.03 [removed] C. \$45.54 [removed] D. \$42.87 [removed] E. \$51.29 [removed] F. \$48.35

6 points

Question 13

The Retarded Company’s dividends are reduced at an annual admonish of 4 percent.  The community proportioned remunerated a dividend of \$4 per divide.  You claim a 16 percent admonish of repay.  How abundantly allure you pay for this accumulation?

 [removed] A. \$13.85 [removed] B. \$19.20 [removed] C. \$15.33 [removed] D. \$17.09 [removed] E. \$21.78 [removed] F. \$12.57

6 points

Question 14

The dividend furnish of a accumulation is 10 percent. If the negotiate expense of the accumulation is \$18 per divide and its dividends feel been amplifying at a firm admonish of 6%, what was the most new dividend remunerated by the community?

 [removed] A. \$1.53 [removed] B. \$0.85 [removed] C. \$1.70 [removed] D. \$1.02 [removed] E. \$1.19 [removed] F. \$1.36

6 points

Question 15

Last year, Jen and Berry Inc. had sales of \$40,000, absorb of goods sold (COGS) of 12,000, derogation inculpate of \$3,000 and selling, open and professional (SG&A) absorb of \$10,000. The divide absorbs were \$2,500. Thirty-five percent of SG&A absorbs are unwandering absorbs. If its sales are expected to be \$60,000 this year, what allure be the estimated SG&A absorbs this year?

 [removed] A. \$12,667 [removed] B. \$11,500 [removed] C. \$10,636 [removed] D. \$12,000 [removed] E. \$13,250 [removed] F. \$14,250

6 points

Question 16

You claim a promote bribe of 3.5 percent on an bombardment in a community. The guiltless admonish of divide in the negotiate is 2.5 percent and the inflation bribe is 3 percent.  US Treasury bills are promote unimpeded. What should be the furnish of the US Treasury bills? Use multiplicative create.

 [removed] A. 6.35% [removed] B. 6.09% [removed] C. 5.58% [removed] D. 5.06% [removed] E. 5.32% [removed] F. 5.83%

6 points

Question 17

Bonds X and Y are same, including the promote tabulate. The solely distinction betwixt A and B is in the coupon reimbursement as shown underneath.

 Bond X Bond Y Face appraise \$1,000 \$1,000 Annual Coupon Payment \$120 \$130 Payment Frequency Semiannual Annual Years to ripeness 15 15 Price \$950.39 ?

What is the expense of association Y?

 [removed] A. \$1,007.15 [removed] B. \$925.88 [removed] C. \$989.75 [removed] D. \$956.95 [removed] E. \$940.92 [removed] F. \$973.44