36.Sharpe General Stores borrowed $100,000 for 5 years at a 12 percent interest rate, compounded monthly, and makes an equal amount of payment at the end of each month. What is the loan balance remaining after the 3rd year?

$19,885

$23,420

$40,203

$29,002

$47,255

38.There is a portfolio that consists of a single stock. Which of the following types of risk can be reduced as the stocks issued by other companies are added to the portfolio?

I. Unexpected operational loss due to a massive product recall related to the passenger airbags

II. Unexpected introduced new tax code that will impose higher corporate tax rates

III. Decline in the nations economic growth expected for the next few year

IV. Resign of the firms CEO due to his personal scandal

I and IV

III and IV

IV only

II and III

II and IV

39.Which of the following statements is correct?

A bond with a coupon rate below its current yield to maturity sells above its par value.

A bond with a coupon rate above its current yield to maturity sells at a discount.

A bond with a coupon rate above its current yield to maturity sells below its par value.

A bond with a coupon rate equal to its current yield to maturity pays no coupons.

A bond with a coupon rate above its current yield to maturity sells at a premium.

40.In which of the following situations, the net present value may not be an appropriate method be used in a capital budgeting decision?

You are examining a project, in which some of the cash flows following the initial investment are expected to be negative.

You are examining a project that is financed through multiple sources of capital.

You are examining a project that requires a relatively high cost of capital.

You are comparing mutually exclusive projects with different longevity.

You are comparing mutually exclusive projects, whose initial investment amounts significantly differ from one another.