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What is the net present value of a project with the following cash flows




Question 1;What is the net present value of a project with the following cash flows if the discount rate is 14 percent?;$742.50;$801.68;$823.92;$899.46;$901.15;Question 2;The 7 percent annual coupon bonds of TPO, Inc. are selling for $1,021. The bonds have a face value of $1,000 and mature in 6.5 years. What is the yield to maturity?;6.42 percent;6.59 percent;6.63 percent;6.68 percent;6.70 percent;Question 3;Healthy Foods just paid its annual dividend of $1.45 a share. The firm recently announced that all future dividends will be increased by 2.8 percent annually. What is one share of this stock worth to you if you require a 14 percent rate of return?;$12.56;$12.95;$13.31;$13.68;$14.07;Question 4;Winter Wear, Inc. has 6 percent bonds outstanding that mature in 13 years. The bonds pay interest semiannually and have a face value of $1,000. Currently, the bonds are selling for $993 each. What is the firm's pre-tax cost of debt?;5.97 percent;6.08 percent;6.14 percent;6.31 percent;8.33 percent;Question 5;The written agreement that contains the specific details related to a bond issue is called the bond;indenture.;debenture.;document.;registration statement.;issue paper.;Question 6;The Pancake House pays a constant annual dividend of $1.25 per share. How much are you willing to pay for one share if you require a 15 percent rate of return?;$7.86;$8.33;$10.87;$11.04;$11.38;Question 7;Which one of the following types of securities has no priority in a bankruptcy proceeding?;Convertible bond;Senior debt;Common stock;Preferred stock;Straight bond;Question 8;A bond has a $1,000 face value, a market price of $1,036, and pays interest payments of $70 every year. What is the coupon rate?;6.76 percent;7.00 percent;7.12 percent;13.51 percent;14.00 percent;Question 9;Which one of the following terms applies to a bond that initially sells at a deep discount and pays no interest payments?;Callable;Income;Zero coupon;Convertible;Tax-free;Question 10;A call provision grants the bond issuer the;right to contact each bondholder to determine if he or she would like to extend the term of his or her bonds.;option to exchange the bonds for equity securities.;right to automatically extend the bond's maturity date.;right to repurchase the bonds on the open market prior to maturity.;option of repurchasing the bonds prior to maturity at a pre-specified price.;Which one of the following terms refers to a bond's rate of return that is required by the market place?;Coupon rate;Yield to maturity;Dirty yield;Call yield;Discount rate;Question 12;A corporate bond pays 8.5 percent interest. You are in the 15 percent tax bracket. What is your after-tax yield on this bond?;1.28 percent;2.23 percent;7.23 percent;8.35 percent;9.78 percent


Paper#20176 | Written in 18-Jul-2015

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