Which types of loan can be repaid with annuity


1. Which type(s) of loan can be repaid with annuity payments?

Pure discount loan

Both pure discount and interest-only loans

Amortized loan

Both interest-only and amortized loans

Interest-only loan

2. A firm has an ROE of 27.5% and an ROA of 12%. What is the internal growth rate if the firm has a 40% dividend payout ratio?

a. 8.46%

b. 7.76%

c. 8.81%

d. 5.71%

e. 4.71%

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Financial Management: Which types of loan can be repaid with annuity
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