Chose the best answer 1.Carol Thomas will pay out $6,000 at the end of year...
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Accounting
Chose the best answer
1.Carol Thomas will pay out $6,000 at the end of year 2, $8,000 at the end of year 3, and receive $10,000 at the end of year 4. With an interest rate of 13%, what is the net value of the payments versus receipts in today's dollars?
a.$7,326
b.$10,242
c.$16,372
d.$4,112
2.The future value of a $500 investment today at 10% annual interest compounded semiannually for five years is ______.
a.$805
b.$814
c.$750
d.$923
3.A 10-year zero-coupon bond that yields 5% is issued with a $1,000 par value. What is the issuance price of the bond? Round to the nearest dollar.
a.$614
b.$64
c.$6,140
d.None of these options
4.The value of a common stock is based on its
a.past performance.
b.historic dividends.
c.current earnings.
d.value of future benefits to the holder.
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