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Financial Mathematics and Corporate Finance
10 questions · Finance. Review key concepts before taking the quiz
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Erin deposits $200 in an account earning 7% nominal interest compounded monthly. After three years, the balance will be closest to:
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A perpetuity pays $1,000 per year beginning at the end of year 5. With a 4% discount rate, what is its present value today?
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A bond with face value $1,000, 6% annual coupon, 10‑year maturity, sells at $865.80. Which yield to maturity best describes the market condition?
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For a project costing $3,000 with cash flows $1,500 in years 1 and 2 and a $800 salvage value at year 2, the internal rate of return (IRR) is closest to:
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If a firm’s weighted average cost of capital (WACC) is 10% and a new machine yields after‑tax cash flows of $500k, $750k, and $1,000k over the next three years, what is the project's net present value?
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A company pays a dividend of $3 today and expects dividends to grow at 8% annually. With a required return of 14%, the maximum price an investor should pay for the stock is:
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An increase in a firm’s debt proportion generally leads to:
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Which of the following best describes the primary objective of a financial manager in a public corporation?
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A firm’s current ratio is above average while its quick ratio is below average. This pattern most likely indicates:
