ABC company issued a 8% semi-annual bond with 5 years to maturity. The yield to maturity a

A.the lowest risk and highest return compared with all of the other attainable portfolios.

B.maximum diversification benefits among risk assets.

C.he cheapest construction cost and the most efficient choice.

A.create unnecessary financial costs.

B.enlarge the magnitude of both earnings and losses.

C.benefit creditors at the expense of owners.

A.The higher the tax rate, the higher the WACC.

B.The higher the tax rate, the lower the WACC.

C.The higher the tax rate, the same the WACC.

A.19.77%.

B.20.74%.

C.17.42%.

ipment supplies. The expansion requires a $200,000 initial investment in return for $60,000 annual after-tax cash inflows for consecutive five years. Assume the cost of capital is 10%. Which of the following conclusions regarding the expansion is most likely correct? NPV IRR Decision

A.227,447.21 16.7% Accept

B.227,447.21 16.7% Reject

C.27,447.21 15.24% Accept

A.Balance sheet

B.Income statement

C.Statement of cash flow

According to their research, the probability of the disease being detected when a baby has a disease is 99.9%. The probability of the disease being detected when the baby has no disease is 0.6%. The historical data shows that the probability of an infant getting the disease is 0.4%. What is the probability that an infant has the disease when it is diagnosed with the disease?

A.40%.

B.80%.

C.60%.

red by Company BND next month. If being acquired, the Company AXY’s stock price will go up by 35%. If the acquisition does not happen, its stock price will drop by 10%. What is the expected rate of return if one invests in Company AXY’s stock?

A.11.5%.

B.10.25%.

C.11.85%.

A.1.4.

B.0.5.

C.0.35.

8% and standard deviation of 6%, the probability that the rate of return will be below 6% is closest to? Cumulative probability for a standard normal distribution: N (0.33)=0.6293.

A.62.93%.

B.59.87%.

C.37.07%.