1. Bob and Marie are planning how to get enough money to send her son to college in 18 years. They have savings of $10,000. The college expected costs are $50,000. At what interest rate they should invest the money?

Select one:

10.51%

20%

12.79%

11.17%

9.35%

10%

not enough data to answer

2. Cambridge Company has the following characteristics:

Sales = $1,000

Total Assets = $1,000

Debt to Assets Ratio = 35%

EBIT (Operating Profit) = $200

Tax Rate = 40%

Interest Expenses = $40

Calculate calculate Cambridge's Return on Equity

Select one:

9.6%

14.8%

16%

20%

45.7%

3.