Which of the following claims about profit maximization being the firm's goal is not ideal?

What is a company's primary shortcoming in terms of its legitimacy as a corporate entity?

Renew-it Rivonia is preparing to pay its first

dividend. It will pay R1,20, R1,45 and R2 a share over the next three years,

respectively. After that, the company has stated that the annual dividend will

be R2,50 per share indefinitely. What is this stock worth to you, per share, if

you demand a 10,8% rate of return on stocks of this type?

Hassim’s Fireworks & Cycles had free cash flow of R129 550 this year,

and expects this to grow by 3% each year for the foreseeable future. The

company has a weighted average cost of capital of 8%. What is the value of the

company today?

A share is trading at R606,82 per share. The

share is expected to have a year-end dividend of R8,50 per share, and it is

expected to grow at a constant rate throughout. The shares’ required rate of

return is 11% (assume the market is in equilibrium with the required return

equal to the expected return). What is your forecast of the constant growth

rate?

Kaboom Fireworks paid a R2,20 per share annual

dividend last week. Dividends are expected to increase by 3,75% annually. What

is one share of this company worth to you today, if your required rate of

return is 15%?

The Mortgage Maven has issued bonds that have a 6%

coupon rate, payable semi-annually. The bonds mature in eight years, have a par

value of R1 000, and a yield to maturity of 7,68%. What is the price of

the bonds?

Which of the following implies an upward-sloping yield curve?

King of Diamonds Industries has bonds on the market

making annual payments, with 14 years to maturity, and selling for R1 482,01.

At this price, the bonds yield 7%. What is the coupon rate?

Today, you want to sell a R1 000 par value zero coupon

bond you own. The bond matures in five years. How much will you receive for

your bond, if the market yield to maturity is currently 5,33%?