Complete the following statements by adding the missing words or selecting the correct option between the 2 alternatives presented as (X/X):One of the most important benefits of using comparative P/E ratios is that they can ________ stocks with different prices and various earnings levels.The P/B ratio does not work well for companies that primarily consist of ___________ assets such as __________.The two-stage DDM approach might be used to value a firm and its stock that experiences two stages of growth. These are a period of higher/lower growth and subsequently a period of higher/lower growth.A major shortcoming of the zero growth DDM model is that the model assumes a constant/growing dividend.The required inputs for the discounted cash flow (DCF) model are: historical/future cash flow amounts for the period analyzed; an estimated historical/future value that will result from the sale of the stock or asset; a discount rate to discount future cash flows to the present/future time.Features of preferred stock are a dividend paid out to stockholders before/after dividends are paid to common stockholders and priority/subordinate claim to assets before common stockholders. Operational efficiency refers to the _____  and _______ of processing a buy or sell order at the best available price. Computerized trading systems such as the Universal Trading Platform used on the Nasdaq, are designed to facilitate high transaction ________ and __________.___________ refers to how quickly a source reflects comprehensive information in the available trading prices.A price is efficient if the market has used all available information to set it implying that the stock always trades at a fair/inflated/deflated value.

View the video Calculate the Present Value for Multiple Cash Flows at the link below:https://www.youtube.com/embed/HxtM34msWGI  1. Provide a practical example from your own personal financial management of why an understanding ofthe present value of future cash flows would be important.2. You expect to receive $10,800 one year from now, $17,400 two years from now, nothing at the end of the third year, and $24,000 four years from now. If you discount all your cash flows at 7%, then with annualcompounding, what are these future cash amounts worth to you in total today? Check you answers using Excel. Submit both your hand-written calculations and your Excel file.  

What is the present value of a perpetuity of $17 per year growing at 2 percent per year with a discount rate of 10 percent?

8. The relationship between time and money depends on:

3. The role of a broker is:

You are presented with 2 investment opportunities with a 5-year horizon. Which of the following investments will produce a larger return: (HINT – which provides the highest future value.) Option 1: A $100 investment earning 10% per year for 5 years; or Option 2: A $130 investment earning 5% per year for 5 years?

10. Which of the following statements is correct:

6. The difference between money markets and capital markets is:

5. The role of a financial intermediary is:

Using Excel solve for the following missing values in the table below:Isntructions:FV = Future Value, PV = Present Value, N or Nper = Number of periods, I/Y = interest rate per period,  PMT = Payments made each period. For a lump sum payment, PMT should be left unspecified. Assume that the periods (Nper) are years.PV is conventionally expressed as a negative value as it is usually what you are paying out, and the FV returned will be positive, what you will receive. Use 2 decimal places for your answers.Upload your excel file to the exam