1. In the year 2005, Dew Pond Co. had sales of $40.5 million. The book value of its total assets was $135 million, and its debt-equity ratio was 0.6. Sixty percent of sales revenues were expensed due to administrative and sales expenses, while depreciation constituted 8% of total assets. In addition, the firm paid 5% interest on its total debt. If Dew Ponds corporate tax rate was 40%, what was the return on its equity?

Answer is 2% - Please show work

2. Holmes Inc. stock just paid a dividend of $1.75 and dividends are expected to grow at a constant rate thereafter. If the market capitalization rate is 13.4% per year and a share of Holmes Inc. stock is currently selling for $46.10, what must be the constant growth rate?

Answer is 9.25% - Please show work

3. In 10 years you wish to own your business. How much will you have in your bank account at the end of the 10 years if you deposit $300 each quarter? (Assume end-of-the-period deposits and that the account is paying an interest rate of 12% compounded quarterly.)

Answer is $22,620.38 - Please show work