In: Finance
Question 56
Compounding is the process of finding the present value of some future amount.
Select one:
True
False
Question 57
Sales divided by net income is referred to as the profit margin.
Select one:
True
False
Question 58
This morning, Alicia bought a ten-year 9% coupon bond that pays interest semi-annually. She paid $994 for a $1,000 bond. If the market interest rate on this type of bond declines to 8.5% tonight, how much will Alicia receive for her first interest payment?
Select one:
a. $90.00
b. $45.00
c. $46.29
d. $32.31
e. $69.58
Question 59
A firm earns net income of $125,000 in a given year and the firm's retained earnings increase $100,000 for that same year. The payout ratio is:
Select one:
a. 60%
b. 80%
c. 20%
d. 40%
e. 100%
Question 60
Suppose a project costs $375 and produces cash flows of $100 over each of the following six years. What is the IRR of the project?
Select one:
a. 10.0%
b. 15.3%
c. There is not enough information; a discount rate is required
d. 18.6%
e. 13.0%