Fuller Fabricsbonds have a current market price of $1,480. The bonds pay interest semi-annual, have a 15-year maturity, a coupon rate of 8.0%, and a par value of $1,000. What is their yield to maturity?

a.4.64%

b.3.78%

c.4.55%

d.1.89%

e.4.14%

You are trying to determine the cost of new common stock.The company issuing the new stock plans to pay a dividend of $2.41 per share, the stock has a price of $110 per share (it will incur a flotationcost of 3%)and a constant growth rate or 3.5%.

a.4.91%

b.10.92%

c.7.78%

d.9.29%

e.5.76%

Thorley Inc. is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's projected IRR can be less than the WACC or negative, in both cases it will be rejected.

Year

0

1

2

3

4

5

Cash flows

-$50,000

$20,000

$20,000

$20,000

$10,000

$10,000

a.12.73%

b.27.46%

c.22.87%

d.22.95%

e.21.00%