Do 36-37

TRUEFALSE. Write T if the statement is true and F if the statement is false. 31) 31) When we WACCto risk and accept high risk projects. apply WACC to evaluate projects with different levels of risk, we could correctly reject estion. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the qu 32) Horse is currently considering a project that will produce cash inflows of $12,000 a year years followed by $6,500 in year 4. The cost of the project is $38,000. What is the 32) The Black profitability index if the discount rate is 7 percent? A) 1.04 B) 1.09 C) 0.96 D) 0.99 33) You are considering the following two mutually exclusive projects. The crossover point is and 33)_ Project should be accepted if the discount rate is 14 percent Project B $21,000 15,000 5,000 7,000 Year Project A $21,000 7,000 7,000 15,000 A) 15.96%; A B) 13.28%; B C) 15.96%; B D) 13.28% A 34) AT&T declared SO.50 per share dividend on 12/1/2016 (Th), the payment day is 1/4/ 34) 2017 (W), and the record date is 12/19/2016 (M), what is the last day you can purchase AT&T stock and still receive its dividends? 9 12/13/2016 12/14/2016 D) 12/15/2016 A) 12/16/2016 B) 12/13/2016 35) 35) USA Manufacturing issued 24-year, 8 5 percent semiannual bonds. The bonds currently quoted a 101 of par value. What is the firm's aftertax cost of debt if the tax rate is 30 percent? A) 562% B) 5.76% C) 5.88% D) 8.40% TRUEFALSE. Write T if the statement is true and 'F if the statement is false. 36) 36) Securities and portfolios lie above SML. are underpricing. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 37) This morning, you purchased a stock that will pay an annual dividend of $1.90 per share 37) next year. You require a 12 percent rate of return and the dividend increases at 3.5 percent annually. What will your capital gain be in dollars on this stock if you sell it thess yars from n$22.35 C)$2.43 D) $24.78 E) $1.65 A) $23.13 B) $22.35