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# Question : I want to know how to work out these three : 11292

I want to know how to work out these three questions, thanks

Q13. An investment pays you \$30,000 at the end of this year, and \$10,000 at the end of each of the four following years. What is the present value (PV) of this investment, given that the interest rate is 5% per year?

A) \$39,614 B) \$63,382- C) \$79,228+ D) \$95,074-

Q14. What is the coupon payment of a 25-year \$1000 bond with a 4.5% coupon rate with quarterly payments?

A) \$3.75- B) \$11.25 C) \$22.50+ D) \$45.00

Q15. Owen Inc. has a current stock price of \$15.00 and is expected to pay a \$0.80 dividend in one year. lf Owen's equity cost of capital is 12%, what price would its stock be expected to sell for immediately after it pays the dividend?

A) \$16.00 B) \$12.80 C) \$16.804 D) \$11.20 [Total: 30 marks: 2 marks each)

## Solution 5 (1 Ratings )

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Finance 1 Year Ago 69 Views