1. Since risk is neither good nor bad, one often overlooked aspect of ERM programs is the ability to
A) eliminate all risks that face an organization
B) capitalize on opportunities and enhance the profit of the organization.
C) guarantee the largest market share in the organization's space.
D) destroy competitors.
2. Radoski Corporation's bonds make an annual coupon interest payment of 7.35%. The bonds have a par value of $1,000, a current price of $1,230, and mature in 15 years. What is the yield to maturity on these bonds?
3. A stock is expected to pay a dividend of $1.75 at the end of the year. The required rate of return is R(s)= 8.5%, and the expected constant growth rate is g = 6.4%. What is the stock's current price?
4. You expect to receive $10,000 at graduation in two years. You plan on investing it at 10 percent until you have $100,000. How long will you wait from now? (Do not round your intermediate calculations.)