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##### ABC Company offers a perpetuity which pays annual payments of $9,478. This contract sells for $276,415 today. What is the interest rate?

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// kindly check the attachment for questions//;Question 1;ABC Company offers a perpetuity which pays annual payments of $9,478. This contract sells for $276,415 today. What is the interest rate?;Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.;;Question 2;Consider a taxable bond with a yield of 11.9% and a tax-exempt municipal bond with a yield of 5.9%. At what tax rate would you be indifferent between the two bonds?;Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.;;Question 3;What is the effective rate of 15.28% compounded quarterly?;Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.;;Question 4;The present value of a 11-year annuity is $200,958. If the interest rate is 10% and payments are made at the end of each period, what is the amount of each payment?;Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.;;Question 5;A project has the following cash flows. What is the internal rate of return?;Year 0 1 2 3;Cash flow -$121,000 68,150 $42,200 $39,100;;12.71%;;14.39%;;14.82%;;13.85%;;13.47%;Question 6;If the coupon rate is greater than the yield to maturity, the bond will;;sell at par;;sell at a discount;;sell at a premium;Question 7;The common stock of ABC Industries is valued at $41.1 a share. The company increases their dividend by 4.5 percent annually and expects their next dividend to be $1.53. What is the required rate of return on this stock?;Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.;;Question 8;A stock just paid a dividend of D 0 = $1.2. The required rate of return is r s = 19.9%, and the constant growth rate is g = 3.8%. What is the current stock price?;Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.;;Question 9;Standard deviation measures;;unsystematic risk;;total risk;;systematic risk;;economic risk;;diversifiable risk;Question 10;1.;You have a portfolio of two risky stocks which turns out to have no diversification benefit. The reason you have no diversification is the returns;;are too small.;;move perfectly with one another.;;are too large to offset.;;are completely unrelated to one another.;;move perfectly opposite of one another.;Question 11;If the market value of debt is $128,853, market value of preferred stock is $125,479, and market value of common equity is 161,266, what is the weight of preferred stock?;Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.;;Question 12;A bond that sells for less than face value is called as;;debenture;;discount bond;

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