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WorksheetsMBA 2nd Evening
Total questions: 7
Worksheet time: 22mins
What is the book value of an asset?
Cost minus accumulated depreciation.
Cost minus liabilities.
Cost minus assets.
None of them.
What is market value?
trading price of an asset in the market.
book value of an asset is called market value.
expenses of purchasing.
None of them.
Bond types are like
Perpetual Bond
Periodic Bond
Periodic Bond
Zero Coupon Bond
Perpetual Bond
Non Zero Coupon Bond
Zero Coupon Bond
All of them
Bond P has a $1,000 face value and provides an 9% annual coupon. The appropriate discount rate is 14%. What is the value of the perpetual bond?
650.89
642.8571
800.00
620.00
Bond Z has a $1,000 face value for 30 years. The appropriate discount rate is 12%. What is the value of the zero coupon bond?
43.00
32.00
35.00
33.3778
Stock CG has an expected dividend growth rate of 10%. Each share of stock just received an annual $3.24 dividend. The appropriate discount rate is 15%. What is the value of the common stock? (Use Constant Model)
74.00
70.00
71.28
None of them
Stock GP has an expected growth rate of 12% for the first 3 years and 8% thereafter. Each share of stock just received an annual $3.24 dividend per share. The appropriate discount rate is 15%. What is the value of the common stock under this scenario?
