1. There is evidence on dividend cuts that
a. firms stock prices recover with the use the cash to retire debt
b. the pain lingers with the misuse the cash from dividend omissions
c. investers in capital accumulation pair out of the transactions at greater rates
d. Two of the above
e. All of the above
2. What is the future value of $1000 invested every year for three years assuming a 9% rate of interest earned per year?
A. $3129.39 B. $3278.10 C. $3819.22 D. $4102.74
3. What is the present value of $250 promised every year for 6 years? Assume a discount rate of 7%.
A. $843.29 B. $1191.63 C. $1342.84 D. $1629.21