priyanka.bawkar

Ultra Petroleum (UPL) has earnings per share of $1.47 and a P/E ratio of 32.76. What’s the stock price? (Round your answer to 2 decimal places.)

A)0.98

B)0.91

C)0.95

D)0.88

E)0.93

You have agreed to a $50,000 fixed-rate loan from First National Bank today and promise to repay the loan with 36 equal monthly payments at an APR of 6.50%. What is the EAR of this loan?

Ms. Smith borrowed $2,000 at an 8% stated rate of interest and was to pay back the loan in 12 monthly payments. What is her effective rate of interest?

What is the future value of an annuity of $2,070.52 per year for 18 years if the annually compounded interest rate is 11.62%?

Suppose you would like to retire in 50 years as a millionaire. If you have $7,500 today, what rate of return must you earn on $7,500 to achieve your goal?

Riggs Corp. management is planning to spend $650,000 on a new marketing campaign. They believe that this action will result in additional cash flows of $285,000 over the next three years. If the discount rate is 17.5 percent, what is the NPV on this project? (Enter negative amounts using negative sign e.g. -45.25. Do not round discount factors. Round other intermediate calculations and final answer to 0 decimal places, e.g. 1,525.)

You want to go to Europe 5 years from now, and you can save $3,100 per year, beginning one year from today. You plan to deposit the funds in a mutual fund that you think will return 8.5% per year. Under these conditions, how much would you have just

What is the current price of a $1,000 par value bond maturing in 9 years with a coupon rate of 8 percent, paid annually, that has a YTM of 9 percent?

What is the current price of a $1,000 par value bond maturing in 12 years with a coupon rate of 14 percent, paid semiannually, that has a YTM of 13 percent?

4. Determine the IRR on the following projects:

a) An initial outlay of $10,000 resulting in a free cash flow of $2,146 at the end of each year for the next 10 years. (2 points)

b) An initial outlay of $15,000 resulting in a free cash flow of $3,500 at the end of each year for the next 5 years. (2 points)

c) An initial outlay of $10,000 resulting in a free cash flow of $1,960 at the end of each year for the next 20 years.

A risk-free, zero-coupon bond with a face value of $1,000 has 15 years to maturity. If the YTM is 5.8%, which of the following would be closest to the price this bond will trade at?

1. A stock is expected to pay $1.25 per share every year indefinitely and the equity cost of capital for the company is 7.5%. What price would an investor be expected to pay per share ten years in the future?

   	a.	$16.67
   	b.	$25.01
   	c.	$33.34
   	d.	$41.68

An initial outlay of $10,000 resulting in a free cash flow of $1,193 at the end of each year for the next 12 years. Determine the IRR.

What is the yield to maturity (YTM) of a zero coupon bond with a face value of $1,000, current price of $940 and maturity of 9 years? Recall that the compounding interval is 6 months and the YTM, like all interest rates, is reported on an annualized basis.

(a) What are the current yield on a three-year bond whose face value
is $1000 with a coupon rate of 6% per year and a price of $900?

(1) 6.00% (2)6.67% (3) 10.00% (4) 10.02% (5) 11.11 %