1)

Heavy Rain Corporation just paid a dividend of $4.04 per share, and the firm is expected to experience constant growth of 2.40% over the foreseeable future. The common stock is currently selling for $85.70 per share. What is Heavy Rain's cost of retained earnings using the Gordon Model (DDM) approach?

Round the answers to two decimal places in percentage form.(Write the percentage sign in the "units" box)

2)

The Poseidon Swim Company produces swim trunk. The average selling price for one of their swim trunks is $82.66. The variable cost per unit is $21.04, Poseidon Swim has average fixed cost per year of $7,339.

Assume that current level of sales level of sales is 346 units. What will be the resulting percentage change in EBIT if they expect units sold to changes by 2.5 percent? (You should calculate the degree of operating leverage first).

(Write the percentage sign in the "units" box)

Round the answer to two decimal places.

3)

Irresistible Chips is reviewing its financial condition. The firm generated an operating profit of $4,664,167. The firm's interest expense was $2,206,747.

What is the firm's degree of financial leverage?Round the answer to two decimals

4)

Pets Store Inc. sells on terms of 1/20, net 40. What is the effective annual cost of trade credit under these terms? Use a 365-day year.

Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box)

5)

Post Card Depot, an large retailer of post cards, orders 3,230,752 post cards per year from its manufacturer. Post Card Depot plans on ordering post card 11 times over the next year. Post Card Depot receives the same number of post cards each time it orders. The carrying cost is $0.13 per post card per year. The ordering cost is $241 per order.

What is the annual total inventory management costs of post card inventory?

(Round the answer to two decimal places).

6)

Cheeseburger and Taco Company purchases 8,427 boxes of cheese each year. It costs $16 to place and ship each order and $4.99 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders.

What is the annual total inventory management costs of cheese inventory.

Round the answer to two decimals.