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Welcome to the free practice questions for the 2 + (P + 10.33)/1.08 upgrade exam for 3 = P/1.08. These questions were hand written with the purpose of complimenting your study material and helping you study for the real exam.

The test is comprised of 15 questions which are randomly selected from a collection of over a hundred. There is no forced time limit but the simulator will keep track of the overall time taken and your final score. For most questions, there are helpful explanations underneath the correct answer, to help you understand the right choice and to learn from any mistakes.

When you’re ready, simply click the "Start Practice Test" button (or link) below to begin the practice test.

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15 questions
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Helpful explanations


About 2 + (P + 10.33)/1.08


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NEW QUESTION: 1
You have invested in a stock that has a dividend growth rate of 4%. It is expected to pay a dividend of $4 per share next year. You expect to sell the stock after 3 years, for a capital gain of about $6 per share. If your required rate of return is 8%, what price would you be ready to pay for the stock?
A. $18.98
B. $15.47
C. $14.18
D. $75.04
Answer: D
Explanation:
Explanation/Reference:
Explanation:
Be careful about the fact that $6 represents the capital gain on the stock, not the selling price. If you buy the stock for a price, P, then the problem has in effect told you that the cash flows from the stock are expected to be: $4 next year, $4 * 1.04 = $4.16 in year 2 and (P + $6 + $4 * 1.04

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Topics Covered in 2 + (P + 10.33)/1.08


As with all upgrades, this exam encompases all of the exam material from the individual 3 = P/1.08 exams. The three core areas covered are: 3 = P/1.08.

A taster of the new features are mentioned above. Many of these topics are tested on the official exam as well as in this practice test.

No Braindumps!


As always, I like to stress that this site does not contain braindumps, EXE files or any other kind of dumps. These are unique handwritten questions, based on the official guidelines from 3 + 15.47. Solving for P gives P = 15.47/(1 -
1/1.08.

It is always better to study for your exam rather than cheat your way through it. You’ll feel better and above all else - you’ll be smarter for it!!

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    2) = $(P + 10.33) in year
    3. The present value of these cash flows at a discount rate of 8% per year is equal to P and this equals P = 4/1.08 + 4.16/1.08




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