What annual interest rate is Bill paying on his loan

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Reference no: EM133014519

Questions -

Q1. What is the future value of RM2,000 after 3 years if the interest rate is 8%, compounded semiannually?

a. RM2,324.89

b. RM2,854.13

c. RM2,530.64

d. RM2,781.45

Q2. Syarikat Tom has common equity of RM40 million. The company's stock price is RM80 per share and its market/book ratio is 4.0. How many unit of stock does the company have outstanding?

a. 500,000

b. 800,000,000

c. 125,000

d. 2,000,000

Q3. Syarikat Dunggon has 100,000 unit of common stock outstanding, its net income is RM750,000, and its P/E ratio is 8. What is the company's stock price?

a. RM60.00

b. RM20.00

c. RM40.00

d. RM30.00

Q4. A company's 2005 sales were RM100 million. If sales grow at 8% per year, how much would it be in 10 years later (in millions)?

a. RM215.89

b. RM201.15

c. RM225.54

d. RM190.49

Q5. How much would RM1,599 due in 9 years be worth today if the discount rate were 10.5%?

a. RM3,770.35

b. RM4,000.00

c. RM3,927.43

d. RM3,955.20

Q6. You want to buy a condo 5 years from now, and you plan to save RM3,000 per year, beginning immediately. You will make five deposits in an account that pays 6% interest. Under these assumptions, how much will you have 5 years from today?

a. RM17,925.96

b. RM15,976.84

c. RM17,513.68

d. RM16,110.34

Q7. How much would you pay for a stock that is expected to make a RM1.50 dividend in one year if the expected dividend growth rate is 3% and you required a 16% return on your investment?

a. RM12.43

b. RM11.54

c. RM13.40

d. RM12.33

Q8. Bill borrowed RM100,000 today that he must repay in 10 annual end-of-year installments of RM14,902. What annual interest rate is Bill paying on his loan?

a. 4.9%

b. 8.0%

c. 7.5%

d. 5.4%

Reference no: EM133014519

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