USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 138

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

-Refer to Exhibit 12.1. What annual dollar coupon amount will investors receive?

• A) $4.75
• B) $47.50
• C) $4.808
• D) $48.08
• E) $62

---

Definitions:

NPV Projects

Projects evaluated based on the Net Present Value method, which calculates the present value of expected cash flows minus the initial investment.

Stock Split

An action by a corporation to break up its present shares into more shares, aiming to improve the tradability of the shares.

Market Price

The price at present for the exchange of an asset or service on the open market.

Paid In Surplus

The amount of money paid by investors for shares above their nominal value during the issuance of shares, reflecting the additional equity capital that is not registered as share capital.