What is the payback period of a $16,000 investment with the following cash flows?             Year                              1                2                3                4                5                       Cash Flow            +$3,000      +$4,000      +$5,000      +$8,000      +$9,000

Which of the following government issued bonds are bonds for which the interest rate (i.e. the coupon rate) stays the same but for which the principal is adjusted for inflation?

Which of the following is a right of an owner of a share of common stock?

Given the following information and assuming straight-line depreciation to zero, what is the profitability index for this project? Initial investment = $75,000; life = 5 years; operating cash flow = $20,000 per year; salvage value = $10,000 in year 5; tax rate = 35%; discount rate = 10%.

A preferred stock that pays a constant dividend of $3.00 forever currently sells for $16.50. What is the required rate of return?

Etling Inc. is expected to pay a $2 dividend in one year and a $3 dividend in two years. The dividends are expected to grow at a 5% growth rate after that forever. If the required return is 14%, what is the price of the stock?

You presently own stock that you purchased one year ago. Your nominal return on the stock for the past year was 20%. You calculate your real return on investment was 11.50%. According to the “Fisher Effect” formula, the rate of inflation must have been _____.

A bond which only pays the coupon payment when the firm has sufficient income is called a(n) _________ bond.

The stand-alone principle states that a project’s analysis should be based solely on which one of the following costs?

Calculate the NPV of the following project cash flow using a discount rate of 5%: Yr 0 = –$1,000; Yr 1 = –$80; Yr 2 = +$100; Yr 3 = +$400; Yr 4 = +$500; Yr 5 = +$600