兹维博迪金融学第二版试题库4TB分析.docVIP

Chapter Four Allocating Resources Over Time This chapter contains 46 multiple-choice questions, 18 short problems and 9 longer problems. Multiple Choice ________ is the process of going from present value to future value, whereas ________ is finding the present value of some future amount. Discounting; compounding Compounding; annualizing Compounding; discounting Discounting; leasing Answer: (c) ________ refers to the interest rate at which money received before the end of the planning horizon can be reinvested. Internal rate Reinvestment rate Cost of equity Compound interest Answer: (b) The difference between an immediate annuity and an ordinary annuity is ________. the number of periods the amount of the payments the interest rate the timing of the payments Answer: (d)  The preferred stock of Tavistock Realty offers a cash dividend of $2.28 per year and it is selling at a price of $110 per share. What is the yield of Tavistock Realty preferred stock? 2.07% 2.12% 2.28% 48.25% Answer: (a) Consider the situation where you have won a $10 million lottery to be received in 25 annual equal payments of $400,000. What will happen to the present value of these winnings if the interest rate increases during the next 25 years? it will not change it will be worth more it will be worth less it cannot be determined Answer: (c) What is the effective annual rate on a bank account that has APR of 8 percent with interest compounded quarterly? 6.12% 8.24% 8.48% 17.17% Answer: (b) You take out a loan with an APR of 10% with monthly compounding. What is the effective annual rate on your loan? 23.87% 21.6% 19.56% 18% Answer: (a)  The CFO of CyberHelp Inc. has $250,000 in cash today that he wants to invest. How much will this investment be worth in four years if the current interest rate is 8%? $270,000 $330,000 $340,125 $342,150 Answer: (c) If you purchase a $12,000 certificate of deposit today with an APR of 14%, with quarterly compounding, what will the CD be worth when it mat