1. According to MM results with taxes :
A) A company will increase its value with less debt
B) A company will increase its value with more debt
C) A company will maintain its value no matter the capital structure
D) None of the above
2. Determine the present value of a $20, 000 payment to be received on January 1, 2023, if it is now November 30, 2016, and money can be invested at 4% interest compounded monthly?
3. Define the influences on the exchange rate, and discuss the government approaches to exchange rate management.
you invest $1000 in an account that pays interest at 12% annual rate, compunded quarterly. How much would you invetment grow to in 5 years.
a.1,600; b. 1,806; c. 1,762; d. 1,272
4. Your rich uncle has promised to pay you $20,000 as a gift upon graduation in 2 years. You plan to invest it for 5 more years at 8.5 percent compounded monthly and use the money you have after 7 years as a down payment to purchase a house. What will be the amount of the down payment?
a.28,500; b.39,450; c.36,180; d.40,400