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NEW QUESTION: 1
A firm has issued a perpetuity with a total face value of 100 million dollars and a coupon rate of 5.8%. If the risk free rate equals 5.8% and investors require a rate of return of 10.6% from the perpetuity, what's the amount the firm raised through the issue?
A. $54.72 million
B. none of these answers
C. $100 million
D. $55.28 million
Answer: A
Explanation:
Explanation/Reference:
Explanation:
The price of a perpetuity that pays C per year, at a discount rate of R, equals C/R. Hence, the price of the perpetuity issue = $(100*5.8%/10.6% ) million = $54.72 million.

NEW QUESTION: 2
All of the following are true about Opportunity Pipeline and Forecast reporting EXCEPT:
A. Pipeline reports may be overridden
B. Forecasts may be overridden
C. Pipeline reports may include omitted opportunities from the forecast
D. Opportunity stages may be used to determine the forecast category of an opportunity
Answer: C

NEW QUESTION: 3
Where can ratings come from for use in the Performance-Potential (or other) Matrix? ( 3 corrects )
A. Employee Profile input
B. PM forms (or other assessment forms)
C. Imported Trend Data
D. Input on the Matrix
Answer: A,B,C