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4. To value future payoffs, what discount rate does an investor use that reflects the return the investor expects based on the perceived level of risk on the investment? a. Coupon rate b. market rate c. Cost of Capital d. Intrinsic rate e. Internal rate of return 5. The forecasted future payoffs in the dividend discount model are: a. Dividends b. Profits c. Excess earnings d. Free cash flow 6. An annuity requires all three: (1) series must be of equal amounts, (2) payment must occur at equally spaced points in time, and (3) [a]_________ 7. A series of equal payments, equally spaced, is known as a_ 8. To determine the intrinsic value of a bond, you need to know the following: _, _, and ___________.

          4. To value future payoffs, what discount rate does an investor use that reflects the return the investor expects based on the perceived level of risk on the investment?
a. Coupon rate
b. market rate
c. Cost of Capital
d. Intrinsic rate
e. Internal rate of return

5. The forecasted future payoffs in the dividend discount model are:
a. Dividends
b. Profits
c. Excess earnings
d. Free cash flow

6. An annuity requires all three: (1) series must be of equal amounts, (2) payment must occur at equally spaced points in time, and (3) [a]_________________________

7. A series of equal payments, equally spaced, is known as a_________________________

8. To determine the intrinsic value of a bond, you need to know the following: _________________, _________________, and ___________________.

Added by Kimberly H.

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