1) Bills has a 5 percent profit margin and a dividend payout ratio of 20 percent. The total asset turnover is 1.6 and the debt-equity ratio is .4. What is the sustainable rate of growth?

A. 9.60 percent.

B 9.84 percent.

C 11.20 percent.

D 9.26 percent.

E 10.89 percent.

2) Redesigned Computers has 6.5 percent coupon bonds outstanding with a current market price of $742. The yield to maturity is 13.2 percent and the face value is $1,000. Interest is paid annually. How many years is it until these bonds mature?

A 5.73 years

B 4.19 years

C 7.41 years

D 6.16 years

E 8.32 years

3) Which one of the following compounding periods will yield the lowest effective annual rate given a stated future value at year 5 and an annual percentage rate of 10 percent?

A Monthly.

B Daily.

C Continuous.

D Semiannual.

E Annual.

4)The outstanding bonds of Winter Tires Inc. provide a real rate of return of 5.6 percent. If the current rate of inflation is 4.68 percent, what is the actual nominal rate of return on these bonds?

A 9.76 percent

B 9.33 percent

C 9.71 percent

D 10.54 percent

E 8.58 percent

5) Drew owns The What-Not Shop, which he is trying to sell so that he can retire and travel. The shop owns the building in which it is located. This building was built at a cost of $647,000 and is currently appraised at $819,000. The counters and fixtures originally cost $148,000 and are currently valued at $65,000. The inventory is valued on the balance sheet at $319,000 and has a retail market value equal to 1.1 times its cost. Jake expects the store to collect 96 percent of the $21,700 in accounts receivable. The firm has $26,800 in cash and has total debt of $414,700. What is the market value of this firm?

A. $867,832

B $775,632

C $695,832

D $1,190,332

E $900,166