1- 4 years from now you will receive a single payment of $3,000. What is the present value if the discount rate is 5.3%?

Round your answer to the nearest penny (two decimal points)

2- In one year you will receive $1,300.

In two years you will receive $1,500.

The discount rate is 7%. What is the sum of the present value of the payments?

Round your answer to the nearest penny (two decimal points)

3- The required rate of return of a security can be estimated by using:

(A) The internal rate of return.

(B) The return on equity.

(C) The rate of inflation

(D) The capital asset pricing model.

4- The difference between ROE and the required return, times common stockholder equity, equals:

(A) Internal rate of return

(B) Comprehensive income

(C) Residual income

(D) Normal income