# finance help 11

I need the following 10 questions answered correctly guarenteed

1. If you invest \$10,000 at 10% interest, how much will you have in 10 years?
A. \$13,860
B. \$25,940
C. \$3,860
D. \$80,712

2. How much must you invest at 8% interest in order to see your investment grow to \$8,000 in 10 years?
A. \$3,070
B. \$3,704
C. \$3,105
D. none of these

3. You are to receive \$12,000 at the end of 5 years. The available yield on investments is 6%. Which table would you use to determine the value of that sum today?
A. Present value of an annuity of \$1
B. Future value of an annuity
C. Present value of \$1
D. Future value of \$1

4. To save for her newborn son’s college education, Lea Wilson will invest \$1,000 at the beginning of each year for the next 18 years. The interest rate is 12 percent. What is the future value?
A. \$7,690.
B. \$34,931.
C. \$63,440.
D. \$62,440.

5. Gary Kiraly wants to buy a new Italian sports car in three years. The vehicle is expected to cost \$80,000 at that time. If Gary should be so lucky as to find an investment yielding 12% over that three-year period, how much would he have to invest now in order to accumulate \$80,000 at the end of the three years?

6. Kathy has \$50,000 to invest today and would like to determine whether it is realistic for her to achieve her goal of buying a home for \$150,000 in 10 years with this investment. What return must she achieve in order to buy her home in 10 years?
C
D

7. Financial capital does not include
A. stock.
B
. bonds.
C. preferred stock.
D. working capital.

8. Debreu Beverages has an optimal capital structure that is 70% common equity, 20% debt, and 10% preferred stock. Debreu’s pretax cost of equity is 9%. Its pretax cost of preferred equity is 7%, and its pretax cost of debt is also 5%. If the corporate tax rate is 35%, what is the weighted average cost of capital?
A. Between 7% and 8%
B. Between 8% and 9%
C. Between 9% and 10%
D
. Between 10% and 12%

9. A firm has \$50 million in assets and its optimal capital structure is 60% equity. If the firm has \$12 million in retained earnings, at what asset level will the firm need to issue additional stock? (Assume no growth in retained earnings.)
B. The firm can increase assets to \$30 million.
C. The firm can increase assets to \$20 million.
D
. There is insufficient information to determine an answer.

10. A firm’s cost of financing, in an overall sense, is equal to its
A. weighted average cost of capital.
B. required yield that investors seek for various kinds of securities.
C
. required rate of return that investors seek for various kinds of securities.
D
. all of these.