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1. Semi-strong-form efficient markets are not weak-form efficient. TRUE OR FALSE

2. ABC Company has $1,000 face value bonds outstanding. These bonds pay interest semiannually, mature in 12 years, and have a 8.5 percent coupon. The current price of the bond is $1020. What is the yield to maturity?
Enter your answer in percentages rounded off to two decimal points.

3. What is the internal rate of return (IRR) of this project given the following cash flows?
Year CF
0 -$2,200
1 $ 900
2 $ 800
3 $ 600
4 $ 700
5 $1,090

4. ABC Company purchased a new machinery 4 years ago for $66,430. Today, it is selling this equipment for $27,297. What is the after-tax salvage value if the tax rate is 26 percent?
The MACRS allowance percentages are as follows, commencing with year one: 20.00, 32.00, 19.20, 11.52, 11.52, and 5.76 percent.

5. What is the project's initial investment outlay based on the following information: The machinery could be purchased for $46,379. Shipping and installation costs would cost another $4,631. The project would require an initial investment in net working capital of $5,459. The company's tax rate is 30%.

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