Finance Answers

An investor evaluates the present value of a perpetual flow of constant payments of 1 550 currency units at 35 000 currency units. Which is the average perpetual expected interest rate, considered in this valuation?:

a. 3.44%

b. 4.43%

c. 4.34%

d. 3.34%

e. 3.77%

A deposit of 400 € will be worth 750 € in 5 years time. The yearly inflation rate is estimated at 1%. The compounded annual interest rate is: " with steps"

a.12.8%

b.18.3%

c.11.6%

d.13.4%

e.15.2%

A mutual fund might produce 5% return, with 40% probability, and 4% return, with 60% probability. Thus the standard deviation of this asset is: " with steps"

a.1.67%

b.0.49%

c.0.34%

d.0.65%

e.0.23%

A deposit of 1 000 $ works with an interest rate of 3%. The deposit's amount, in 2 years time, will be 1 061 $. The total interest earned from this financial placement and the interest earned after one year, are: " with steps"

a.20 $ and 61 $

b. 31 $ and 60 $

c. 61 $ and 30 $

d. 50 $ and 20 $

e. 30 $ and 60 $

One of the following statements is true:

a. the NPV_invest is a sum of future values

b. a rational investor seeks a higher risk to return ratio from all investment alternatives

c. the lowest risk on the financial market is characteristic to state bonds

d. deposits are usually inflated by the central bank

e. normal probability distribution is common on the US stock exchange

A deposit of 1 000 $ works with an interest rate of 3%. The deposit's amount, in 2 years time, will be 1 061 $. The total interest earned from this financial placement and the interest earned after one year, are: " with steps"

a.61 $ and 30 $

b.31 $ and 60 $

c.20 $ and 61 $

d.50 $ and 20 $

e.30 $ and 60 $

A mutual fund might produce 5% return, with 40% probability, and 4% return, with 60% probability. Thus the standard deviation of this asset is: " with steps "

a. 0.23%

b. 1.67%

C. 0.65%

d. 0.49%

e. 0.34%

A share is yielding constant dividends for 5 years and is going to be sold for 400 € at the beginning of the 6th year. The annual dividend is equal to 50 €. The issuing company is financed both by equity and debt and has a WACC of 8%. The dividend yield for 5 years and the financial value of the share, are: "| with steps "

a. 180 € and 139 €

 b. 250 € and 472 €

c. 170 € and 200 €

d. 560 € and 325 €

e. 240 € and 235 €