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problem1: find out the future value of $2000 after three years if the appropriate interest rate is 8 percent, compounded semiannually?

[A] $2,324.89

[B] $2,011.87

[C] $2,854.13

[D] $2,781.45

[E] $2,530.64

problem2: The primary operating goal of a publicly-owned firm interested in serving its stockholders should be to;

[A] Minimize the chances of losses

[B] Maximize the stock price per share over the long run, which is the stock intrinsic value

[C] Maximize its expected total corporate income

[D] Maximize its expected EPS

[E] Maximize the stock price on a specific target rate

problem3: You own an oil well that will pay you $25,000 per year for 8 years, with the 1st payment being made today. If you think a fair return on the well is 7 percent, how much should you ask for if you decide to sell it?

[A] $217,513

[B] $315,976

[C] $159,732

[D] $116,110

[E] $288,349

problem4: Assume you borrowed $25,000 at a rate of 8 percent & must repay it in four equal installments at the end of each of the next 4 years. How large your payments are?

[A] $7,324.89

[B] $7,011.87

[C] $7,854.13

[D] $7,691.45

[E] $7,548.02

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M921261

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