Question1: Calculate the future value of $2000 after three years if the appropriate interest rate is 8 percent, compounded semiannually?
[A] $2,324.89
[B] $2,011.87
[C] $2,854.13
[D] $2,781.45
[E] $2,530.64
Question2: The primary operating goal of a publicly-owned firm interested in serving its stockholders should be to;
[A] Minimize the chances of losses
[B] Maximize the stock price per share over the long run, which is the stock intrinsic value
[C] Maximize its expected total corporate income
[D] Maximize its expected EPS
[E] Maximize the stock price on a specific target rate
Question3: You own an oil well that will pay you $25,000 per year for 8 years, with the 1st payment being made today. If you think a fair return on the well is 7 percent, how much should you ask for if you decide to sell it?
[A] $217,513
[B] $315,976
[C] $159,732
[D] $116,110
[E] $288,349
Question4: Assume you borrowed $25,000 at a rate of 8 percent & must repay it in four equal installments at the end of each of the next 4 years. How large your payments are?
[A] $7,324.89
[B] $7,011.87
[C] $7,854.13
[D] $7,691.45
[E] $7,548.02