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Valuations & TVM

Authored by JESSE MANICKUM

Mathematics

University

Used 6+ times

Valuations & TVM
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5 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

20 sec • 1 pt

Valuations are subjective/involve judgement.

True

False

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How do you calculate the value of a non-redeemable preference share?

PV of the annuity payment

FV of the annuity payment

PV of the perpetuity payment

FV of the perpetuity payment

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How do you calculate the value of a redeemable bond?

PV of the annuity payment

FV of the annuity payment

PV of the perpetuity payment

FV of the perpetuity payment

4.

MULTIPLE SELECT QUESTION

45 sec • 1 pt

A redeemable pref share carries annual dividend payments. The market rate is a monthly compounded rate. Select all answers that apply when calculating the PV of this pref share.

N- months

N-annual

I/Y- monthly

I/Y- effective annual

5.

MULTIPLE SELECT QUESTION

45 sec • 1 pt

A non-redeemable bond carries monthly interest payments of R10. The market interest rate is an effective rate of 12% based on monthly compounding. Select all that apply when calculating the PV of the bond.

PMT = 10 x 12

PMT = 10

I/Y = 12%

I/Y= (12% converted to nominal) / 12

I/Y = 12%/12

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