Finance Answers

The 1.2 million preferred shares of Mighty Machines Ltd., which pay a dividend rate of 6.5 percent on a stated value of $40, are currently worth $42,000,000. What is the risk premium associated with these preferred shares if the risk-free rate is 4.25 percent?

Pharoah Corporation has issued $1 million in preferred shares to investors with a 7.90 percent annual dividend rate on a par value of $100. Assuming the firm pays dividends indefinitely and the required rate is 10 percent, calculate the price of the preferred shares.

Wildhorse, Inc., has bonds outstanding that will mature in 8 years. The bonds have a face value of $1,000. These bonds pay interest semiannually and have a coupon rate of 4.6 percent. If the bonds are currently selling at $909.92, what is the yield to maturity that an investor who buys them today can expect to earn? What is the effective annual yield?

How to calculate PAYG W'hold ?

In 30 years, you plan to set up a fellowship fund for your university that pays out $100,000/year in perpetuity with an annually compounded discount rate of 5%. In order to set up the fund in 30 years, how much do you need to save each year (starting this year) assuming you can get a semi-annually compounded return of 10% on your savings for the next 30 years?

9._______ are those payable to a named payee or some person designed by him.
a.Order Bills
b.Drawer Bill
c.Incomplete Bills
d.Inland Bills

10.All of the following are types of relationships that exists between a customer and a bank except______
a.Bailee or Bailor relationship
b.Manager relationship
c.Agent/Principal relationship
d.Trustee relationship

7.One of the following is not a responsibility or duties of the loan committee
a.Ascertain the reasons for renewal
b.To ensure that loans are given out to all customers
c.Review major loan renewals
d.To review major new loans

8.Discount Houses provide all the following sources of fund_______
a.Deposits
b.Short-term borrowing
c.Reserves
d.Call money

5.One of the following is not a Canon of good lending
a.Over the counter payment
b.Loan features
c.Retained profit
d.Letter of credit

6.One of the following is not an instrument or methods used for internal payment through the banking system within Nigeria
a.Certificate of deposit
b.Cashcard
c.Cheque
d.Creditcard

3.Which of the following is not a portion of the total receipts from the profits of a bank
a.Interest Dividends
b.Bank reserves
c.Commission
d.Discounts

4.Which of the following is not one of the parties to a bill of exchange?
a.Drawer
b.Biller
c.Drawee
d.Payee

1.An unconditional order in writing addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand, or at a fixed determinable future time, a sum certain in money to or to the order of a specified person or bearer is known as _____________
a.Bill of Exchange
b.Banker\'s acceptance
c.Promissory Note
d.Banker\'s acceptance

2._______means the payee, or endorser of a Bill or Note, who is in possession of it or bearer thereof.
a.Drawee
b.Endorser
c.Holder
d.Possessor