Reference no: EM132559681

Questions -

Q1. It is estimated that next year hourly wage rates will increase by 7 percent and productivity will increase by 5 percent. What would you expect to happen to unit labor cost?

a. 12%

b. 2.5%

c. 3 %

d. 2%

Q2. A local bond having a face value of $1000 is currently being traded in the market at a price of $1200. The bond has an annual 4% coupon rate, with interest paid annually, and matures in 5 years. What is the yield to maturity of the bond?

a. 1.77% semi annually

b. 0% Annually

c. 2.8% annually

d. 3.53% semi annually

Q3. Stars Ltd, being a local company and engaging is agricultural products, is maintaining a constant growth rate. Its last dividend that was paid yesterday, was $2.00, and the dividend is expected to grow indefinitely at a 6 percent rate. The required rate of return is 13%. What is the stock's expected value one year from now?

a. $32.68

b. $25.38

c. $32.14

d. $26.05