Question

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A bond maturing in 10 years pays RM80 each year and RM1,000 upon maturity. Assuming 10 percent to be the appropriate discount rate, the present value of the bond is

Select one:

a. RM877.11.

b. RM1,000.00.

c. RM1,785.67.

d. RM416.39.

Jimmy just bought a new Perodua Bezza for his business. The price of the vehicle was RM40,000. Jimmy made a RM5,000 down payment and took out an amortized loan for the rest. The car dealership made the loan at 8% interest compounded monthly for five years. He is to pay back the principal and interest in equal monthly installments beginning one month from now. Determine the amount of Jimmy's monthly payment.

Select one:

a. RM745.87

b. RM709.67

c. RM634.56

d. RM809.33

Megat Bhd just paid a dividend of RM1.33. Its stock has a dividend growth rate of 7.6% and a required return of 12.21%. What is the current stock price if we anticipate dividends stopping in 10 years?

Select one:

a. RM21.03

b. RM31.04

c. RM10.64

d. RM11.92

Answer 1

1)