Test exam of corporate finance

Question 1
Jefferson & Sons is evaluating a project that will increase annual sales by Skr138,000 and
annual costs by Skr94,000. The project will initially require
Skr110,000 in non-current assets that will be depreciated straight-line to a zero book value
over the 4-year life of the project. The applicable tax rate is 32
per cent. What is the operating cash flow for this project?
ANSWER
Skr29,920
Skr38,720
Skr11,220
Skr46,620
Skr46,480

Question 2
Acer has bonds on the market with 17.5 years to maturity, a YTM of 6 per cent, and a current
price of €924. The bonds make semiannual payments. The
par value of the bond is €1,000. What must the coupon rate be on these bonds?
ANSWER
6.43 per cent
5.29 per cent
4.12 per cent
7.19 per cent
8.43 per cent

Question 3
Uptown Industries just decided to save $3,000 a quarter for the next three years. The money
will earn 2.75 percent, compounded quarterly, and the first
deposit will be made today. If the company had wanted to deposit one lump sum today,
rather than make quarterly deposits, how much would it have had
to deposit to have the same amount saved at the end of the three years?
ANSWER
$34,441.56
$33,687.23
$34,678.35
$33,428.87
None of the above