Chose the best answer 1.Carol Thomas will pay out $6,000 at the end of year...

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Accounting

Chose the best answer

1.Carol Thomas will pay out $6,000 at the end of year 2, $8,000 at the end of year 3, and receive $10,000 at the end of year 4. With an interest rate of 13%, what is the net value of the payments versus receipts in today's dollars?

a.$7,326

b.$10,242

c.$16,372

d.$4,112

2.The future value of a $500 investment today at 10% annual interest compounded semiannually for five years is ______.

a.$805

b.$814

c.$750

d.$923

3.A 10-year zero-coupon bond that yields 5% is issued with a $1,000 par value. What is the issuance price of the bond? Round to the nearest dollar.

a.$614

b.$64

c.$6,140

d.None of these options

4.The value of a common stock is based on its

a.past performance.

b.historic dividends.

c.current earnings.

d.value of future benefits to the holder.

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