**Question**

**1.**

1-What is the present value of a constant perpetuity of 25 per year where the required rate of return is 5%?

**193.61**

**22.73**

**500.00**

**250.00**

2-Calculate the 2 year annuity factor if the required rate of return is 10%.

**2.486**

**1.736**

**0.091**

**0.826**

3-What is the present value of a cash inflow of 1250 four years from now if the required rate of return is 8% (Rounded to 2 decimal places)?

**918.79**

**938.75**

**835.75**

**992.50**

4-What is the future value of 875 six years from now if the required rate of return is 7% (Rounded to 2 decimal places)?

**1550.50**

**1147.13**

**1281.00**

**1313.14**

5-If the present value of a growing perpetuity is 214, the required rate of return is 10%, and growth rate is 3%, what is the cash flow in year 1? (Round to the nearest whole number).

**3057**

**15**

**21**

**6**

6-If a bond is trading at a premium, what is the relationship between the bond’s coupon rate, current yield and yield to maturity?

**Coupon Rate < Current Yield < Yield to Maturity**

**Coupon Rate > Current Yield > Yield to Maturity**

**Coupon Rate > Yield to Maturity > Current Yield**

**Coupon Rate = Current Yield = Yield to Maturity**

7-What is the current yield on a 3 year bond with 10% annual coupons, a par value of 100, and a current price of 107.87?

**7.37%**

**7.00%**

**9.27%**

**10.00%**

8-What is the yield to maturity for a 3 year bond with a 10% annual coupon if the bond is trading at par?

**9.00%**

**11.00%**

**10.00%**

**9.75%**

9-What is the price of a two year bond with a 9% annual coupon and a yield to maturity of 8%?

**97.51**

**101.78**

**105.25**

**102.53**

10-What is the definition of yield to maturity?

**The return the investor gets from the income component of a bond as a percent of it’s current price**

**The overall return the investor makes if they purchase a bond today and hold to maturity**

**The overall return the investor makes as a percent of a bond’s par value**

**The return the investor gets from the income component of a bond as a percent of it’s par value**

11-What is the weight of capital for ABC Limited which has the following capital structure? $5m of equity with a cost of equity of 15%; $2m of mezzanine finance with a cost of 9.5%; $1m of senior debt with a cost of debt of 7%

**13.73%**

**8.63%**

**9.56%**

**12.63%**

12-What is the expected share return given the following macro-economic probabilities? Probability of recession 20% – Share return 5%; Probability of steady state 60% – Share return 10%; Probability of boom 20% – Share return 15%

**7%**

**12%**

**8%**

**10%**

13-Calculate a four-day moving average for the price of the stock for the end of Day 7. Day 1 – 62.00; Day 2 – 56.00; Day 3 – 50.00; Day 4 – 60.00; Day 5 – 59.00; Day 6 – 55.00; Day 7 – 59.00; Day 8 – 63.00

**56.25**

**57.00**

**58.25**

**59.00**

14-Calculate a three-day weighted moving average for the price of the stock for the end of Day 7 where the most recent price has a weight of 3, the next has a weight of 2, and the oldest price has a weight of 1. Day 1 – 62.00; Day 2 – 56.00; Day 3 – 50.00; Day 4 – 60.00; Day 5 – 59.00; Day 6 – 55.00; Day 7 – 59.00; Day 8 – 63.00

**57.17**

**57.83**

**56.00**

**57.67**

15-An insurance company has provided you with a sample of paid claims. The sample includes the following claims: 192, 113, 200, 287, and 225. What are the mean and the variance respectively of this sample rounded to nearest whole number?

**210, 3942**

**210, 63**

**203, 63**

**203, 3942**

16-In the simple linear regression equation y = α + βx + ε, what is β?

**The error term**

**The slope of the line of best fit**

**The independent variable**

**The y intercept**

17-Covariance is best described as:

**a measure of how much two sets of numbers change together**

**a measure of how far one set of numbers are spread out from each other**

**a weighted average of all possible values that a variable can take on**

**the square root of the variance**

18-What does a diagram of a perfectly positive correlation look like?

**A curved line that slopes from the bottom left to the top right quardrant**

**A perfectly straight line that slopes from the bottom left to the top right quardrant**

**A perfectly straight line that slopes from the top left to the bottom right quardrant**

**A scatter plot that have dots all over the place**

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

Essays

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Admissions

Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Reviews

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Reviews

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.