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##### Finance Quiz Questions

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Question;Calculate the Future Value of an Annuity that has the following characteristics: (a) PMT: $1,505, (b) RATE: 10%, and (c) NPER: 25.How much would you be willing to pay for a bond that pays semi-annual coupon payments and has the following characteristics: (a) NPER: 18, (b) YTM: 8%, and Coupon: $35.80.What is the maximum price that you would be willing to pay for a no-growth stock that has the following characteristics: (a) Dividend (Has Paid): $4.00 and (b) Required Rate of Return: 12%.What is the maximum price that you would be willing to pay for a constant growth stock that has the following characteristics: (a) Dividend (Has Paid): $3.25, (b) Growth: 7%, and (c) Required Rate of Return: 12%.What is the maximum price that you would be willing to pay for a non-constant growth stock that has the following characteristics: (a) Non-Constant Growth Rate: 20%, (b) Constant Growth Rate: 5%, (c) Dividend (Will Pay): $4.50, and (d) Required Rate of Return: 12%.Calculate the YTM on a bond with the following characteristics: (a) Price: $884, (b) Coupon: $50.00, and (c) NPER: 24.Calculate Company A?s weighted average cost of debt, given the following information: (a) Tax Rate: 20%, (b) Average Price of Outstanding Bonds: $1,120, (c) Coupon Rate: 5%, (d) NPER: 27, (e) Debt: $33,000,000, (f) Equity: $24,000,000, and (g) Preferred Stock: $5,000,000.Calculate Company B?s weighted average cost of equity, given the following information: (a) Dividend: $1.50, (b) Growth Rate: 4.5% (c) Price: $21.50, (d) Debt: $33,000,000, (e) Equity: $24,000,000, and (f) Preferred Stock: $5,000,000.Calculate Company C?s weighted average cost of preferred stock, given the following information: (a) Coupon Payments: $6.00, (b) Price of Preferred Stock: $50.00, (c) Debt: $33,000,000, (d) Equity: $24,000,000, and (e) Preferred Stock: $5,000,000.Calculate Company D?s weighted average cost of capital, given the following information: (a) Tax Rate: 22%, (b) Average Price of Outstanding Bonds: $1,280, (c) Coupon Rate (Debt): 7%, (d) NPER (Debt): 10, (e) Dividend: $4.60, (f) Growth Rate: 6%, (g) Price: $40.50, (h) Dividend on Preferred Stock: $4.00, (i) Price of Preferred Stock: $45.60, (j) Debt: $10,000,000, (k) Equity: $15,000,000, and (l) Preferred Stock: $2,000,000.Calculate Company E?s weighted average cost of equity, given the following information: (a) Expected Return on the Market: 14%, (b) Beta for Company E: 1.34, (c) Expected Risk Free Rate of Return: 4%, (d) Debt: $33,000,000, (e) Equity: $24,000,000, and (f) Preferred Stock: $5,000,000.Calculate the difference between daily and annual compounding, given the following information: (a) PV: $52,000, (b) NPER: 30, and (c) RATE: 10%.Calculate the PMT on a mortgage, given the following information: (a) PV: $439,000, (b) RATE: 4%, and NPER: 30.Calculate the present value of a lump sum payment with the following characteristics: (a) RATE: 5%, (b) NPER: 22, and (c) FV: $75,230.Calculate the RATE given the following characteristics: (a) PV: $29,325, (b) FV: $54,000, and (c) NPER: 15. Calculate the NPER given the following characteristics: (a) PV: $100,000, (b) FV: $134,000, and (c) RATE: 5%.Calculate the RATE given the following characteristics: (a) PMT: $20,000 (you are paying), (b) FV: $134,000, and (c) NPER: 5.Calculate the required rate of return on a company?s stock that has the following characteristics: (a) Constant Growth Rate: 5%, (b) Price: $50.00, and (c) Dividend (Has Been Paid): $5.00.

Paper#48585 | Written in 18-Jul-2015

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