PART A: Multiple-chojes questions (7.5 marks total 70.5 murk eseh). Write your answers clearfy in the table provided at the end of Pan (7. No. Note that you MAY MOT ehange your answer(s) ence you have marked it (them). Any question with multiple answer change will be marked wrong limmediately. Therefore, make sure you have absolutely made up your mind before you write your cheice. 1. Which of the following is one of the ways that a firm can increace its dividend? 1. By increasing its retention rate II. By decreasing its shares outstanding III. By increasing its eamings (net income) A) 1 and II B) II and III C) 1 and III D) 1,11 and III 2. Consider the following yields to maturity on vanous ene-year, zero-coupon securities: The credit spread of the B corporate bond is closest to A) 3.6% B) 2.8% C) 1.6% D) 1.2% 3. The yield curve is typically A) downward sloping B) upward sloping C) flat D) inverted 4. Ali is saving for a downpayment to buy a bouse. He deposits a fixed amount every quanter in a mutual fund that eams an APR of 10.0% in average. If his account calculates retums quarterly then how much should he deposit each quarter in order to have $50,000 in the accoun in five years' lime? A.) $2,280 B) $1852 C) $2,045 D) $1,957 5. Two years ago you purchased a new MPV for $50,000. You financed your MPV for 60 months at 6.15% APR (with payments made at the end of the month). You have just made your 24 th monthly payment on your MPV. Assurming that you have made all of the first 24 payments con time, what is the outstanding principal balance (rounded to the nearest dollar) on your MPV loan? A) $17,818 B) $34,925 C) 531,818 D) $23,283