Question 1What is the net present value of a project with the following cash flows if the discount rate is 14 percent?$742.50$801.68$823.92$899.46$901.15Question 2The 7 percent annual coupon bonds of TPO, Inc. are selling for $1,021. The bonds have a face value of $1,000 and mature in 6.5 years. What is the yield to maturity?6.42 percent6.59 percent6.63 percent6.68 percent6.70 percentQuestion 3Healthy Foods just paid its annual dividend of $1.45 a share. The firm recently announced that all future dividends will be increased by 2.8 percent annually. What is one share of this stock worth to you if you require a 14 percent rate of return?$12.56$12.95$13.31$13.68$14.07Question 4Winter Wear, Inc. has 6 percent bonds outstanding that mature in 13 years. The bonds pay interest semiannually and have a face value of $1,000. Currently, the bonds are selling for $993 each. What is the firms pre-tax cost of debt?5.97 percent6.08 percent6.14 percent6.31 percent8.33 percentQuestion 5The written agreement that contains the specific details related to a bond issue is called the bond:indenture.debenture.document.registration statement.issue paper.Question 6The Pancake House pays a constant annual dividend of $1.25 per share. How much are you willing to pay for one share if you require a 15 percent rate of return?$7.86$8.33$10.87$11.04$11.38Question 7Which one of the following types of securities has no priority in a bankruptcy proceeding?Convertible bondSenior debtCommon stockPreferred stockStraight bondQuestion 8A bond has a $1,000 face value, a market price of $1,036, and pays interest payments of $70 every year. What is the coupon rate?6.76 percent7.00 percent7.12 percent13.51 percent14.00 percentQuestion 9Which one of the following terms applies to a bond that initially sells at a deep discount and pays no interest payments?CallableIncomeZero couponConvertibleTax-freeQuestion 10A call provision grants the bond issuer the:right to contact each bondholder to determine if he or she would like to extend the term of his or her bonds.option to exchange the bonds for equity securities.right to automatically extend the bonds maturity date.right to repurchase the bonds on the open market prior to maturity.option of repurchasing the bonds prior to maturity at a pre-specified price.Which one of the following terms refers to a bonds rate of return that is required by the market place?Coupon rateYield to maturityDirty yieldCall yieldDiscount rateQuestion 12A corporate bond pays 8.5 percent interest. You are in the 15 percent tax bracket. What is your after-tax yield on this bond?1.28 percent2.23 percent7.23 percent8.35 percent9.78 percent