FIN 370 Final Exam Homework | Page 8

A firm is expected to pay a dividend of $ 2.00 next year and $ 2.14 the following year . Financial analysts believe the stock will be at their target price of $ 75.00 in two years . Compute the value of this stock with a required return of 10 percent .
​ $ 79.14
​ $ 65.40
​ $ 65.57
​ $ 66.67
Which financial statement shows the total revenues that a firm earns and the total expenses the firm incurs to generate those revenues over a specific period of time — generally one year ?
​Statement of cash flows ​Statement of retained earnings ​Balance sheet ​Income statement
Which of the following is a true statement ?
​If interest rates fall , all bonds will enjoy rising values . ​If interest rates fall , corporate bonds will have decreasing values . ​If interest rates fall , no bonds will enjoy rising values . ​If interest rates fall , U . S . Treasury bonds will have decreasing values .