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Question;Question 21;Your parents have made you two offers.;The first offer includes annual gifts of $10,000, $11,000, and $12,000 at the;end of each of the next three years, respectively. The other offer is the;payment of one lump sum amount today. You are trying to decide which offer to;accept given the fact that your discount rate is 8 percent. What is the minimum;amount that you will accept today if you are to select the lump sum offer?;A.;$28,216;B.;$29,407;C.;$29,367;D.;$30,439;E.;$30,691;Question 22;Grand Adventure Properties offers a 9.5;percent coupon bond with annual payments. The yield to maturity is 11.2 percent;and the maturity date is 11 years from today. What is the market price of this;bond if the face value is $1,000?;A.;$895.43;B.;$896.67;C.;$941.20;D.;$946.18;E.;$953.30;Question 23;Which one of the following types of;stock is defined by the fact that it receives no preferential treatment in;respect to either dividends or bankruptcy proceedings?;A.;dual class;B.;cumulative;C.;non-cumulative;D.;preferred;E.;common;Question 24;What are the distributions to shareholders;by a corporation called?;A.;retained earnings;B.;net income;C.;dividends;D.;capital payments;E.;diluted profits;Question 25;A project has an initial cost of $27,400;and a market value of $32,600. What is the difference between these two values;called?;A.;net present value;B.;internal return;C.;payback value;D.;profitability index;E.;discounted payback;Question 26;The length of time a firm must wait to;recoup the money it has invested in a project is called the;A.;internal return period.;B.;payback period.;C.;profitability period.;D.;discounted cash period.;E.;valuation period.;Question 27;How does the net present value (NPV);decision rule relate to the primary goal of financial management, which is;creating wealth for shareholder


Paper#45022 | Written in 18-Jul-2015

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