South University MBA6010 Week 5 Quiz Latest 2019
Question 1 Your firm has average daily receipts of $2,500. These receipts are available after
6 days on average. The interest rate that could be earned is .02% (.0002) per day. What is the
approximate cost of the float per day?
Question 1 options:
a) $2.50
b) $3.00
c) $30.00
d) $50.00
e) None of these
Present value of delayed float = $2,500/(1 + .0002(6)) = $2,497 Cost = $2,500 - $2,497 = $3
Question 2 The common stock of Grady Co. had an 11.25% rate of return last year. The
dividend amount was $.70 a share which equated to a dividend yield of 1.5%. What was the
rate of price appreciation on the stock?
Question 2 options:
a) 1.50%
b) 8.00%
c) 9.75%
d) 11.25%
e) 12.75%
r = D1/P0 + g
g = r - dividend yield
capital gain = g = 11.25% = 1.5% = 9.75%
Question 1 Your firm has average daily receipts of $2,500. These receipts are available after
6 days on average. The interest rate that could be earned is .02% (.0002) per day. What is the
approximate cost of the float per day?
Question 1 options:
a) $2.50
b) $3.00
c) $30.00
d) $50.00
e) None of these
Present value of delayed float = $2,500/(1 + .0002(6)) = $2,497 Cost = $2,500 - $2,497 = $3
Question 2 The common stock of Grady Co. had an 11.25% rate of return last year. The
dividend amount was $.70 a share which equated to a dividend yield of 1.5%. What was the
rate of price appreciation on the stock?
Question 2 options:
a) 1.50%
b) 8.00%
c) 9.75%
d) 11.25%
e) 12.75%
r = D1/P0 + g
g = r - dividend yield
capital gain = g = 11.25% = 1.5% = 9.75%
