In: Finance
Question 36
The market value of a firm’s equity is frequently called:
Select one:
a. Market capitalization.
b. Total financing.
c. Debt-equity reconciliation.
d. Debt-equity consolidation.
e. Total assets.
Question 37
Etling Inc.'s dividend is expected to grow at 7% for the next two years and then at 3% forever. If the current dividend is $3 and the required return is 15%, what is the price of the stock?
Select one:
a. $25.54
b. $26.15
c. $29.45
d. $25.10
e. $27.68
Question 38
An operating lease is usually a shorter-term lease in which the lessor is responsible for insurance, taxes, and upkeep.
Select one:
True
False
Question 39
A typical car loan is an example of an amortized loan.
Select one:
True
False
Question 40
You are considering a project that costs $150 and has expected cash flows of $55, $60.50, and $66.55 over the next three years. If the appropriate discount rate for the project's cash flows is 10%, what is the net present value of this project?
Select one:
a. $0.00
b. $0.71
c. $64.10
d. The NPV is negative
e. $19.79
Question 36
The market value of a firm’s equity is frequently called:
Select one:
a. Market capitalization.
Question 37
Etling Inc.'s dividend is expected to grow at 7% for the next two
years and then at 3% forever. If the current dividend is $3 and the
required return is 15%, what is the price of the stock?
=3*1.07/1.15+3*1.07^2/1.15^2+(3*1.07^2*1.03/(15%-3%))/1.15^2
Select one:
e. $27.68
Question 38
An operating lease is usually a shorter-term lease in which the
lessor is responsible for insurance, taxes, and upkeep.
Select one:
True
Question 39
A typical car loan is an example of an amortized loan.
Select one:
True
Question 40
You are considering a project that costs $150 and has expected cash
flows of $55, $60.50, and $66.55 over the next three years. If the
appropriate discount rate for the project's cash flows is 10%, what
is the net present value of this project?
=-150+55/1.1+60.5/1.1^2+66.55/1.1^3=0
Select one:
a. $0.00