1)

John purchased 100 shares of Black Forest Inc. stock at a price of$158.02 three months ago. He sold all stocks today for$161.79. During this period the stock paid dividends of$5.20 per share. What is John's annualized holding period return (annual percentage rate)?

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

2)

Tall Trees, Inc. is using the modified internal rate of return (MIRR) when evaluating projects.The company is able to reinvest cash flows received from the project at an annual rate of 9.22 percent.What is the MIRR of a project if the initial costs are $2,072,900 and the project life is estimated as 6 years? The project will produce the same after-tax cash inflows of 507,200 per year at the end of the year.

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

3)

A project has an initial outlay of $1,983. It has a single payoff at the end of year 8 of $7,566. What is the profitability index (PI) of the project, if the company's cost of capital is 5.11 percent?

Round the answer to two decimal places.

4)

Paul Sharp is CFO of Fast Rocket Inc. He tries to determine the cost of equity financing for his company. The stock has a beta of 1.54. Paul estimated that the market return is 6.30%. The current rate for 10-year Treasury Bonds is 3.54%. Calculate cost of common equity financing using CAPM - SML formula.

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

5)

Garden Tools Inc. has bonds, preferred stock, and common stocks outstanding. The number of securities outstanding, the current market price, and the required rate of return for these securities are stated in the table below. The firm's tax rate is 35%.

Calculate the firm's WACC adjusted for taxes using the market information in the table.

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

_______ Number of Securities Outstanding__Selling price__ Required Rate of Return

Bonds 1,170 $955 9.20%

Preferred Stocks 5,580 $70.04 15.46%

Common Stocks 1,988 $114.27 13.83%

6)

The Poseidon Swim Company Produces Swim Trucks. The average selling price for one of their swim trunks is $42.62. The variable cost per unit is $18.57, Poseidon Swim has average fixed cost per year of $37,189.

What is the break-even in dollar sales?

7)

Irresistible Chips is reviewing its financial condition. The firm generated an operating profit of $3,955,616. The firm's interest expense was $2,203,785.

What will be the resulting percentage change in earnings per share if they expect operating profit to change -4.2 percent?

(You should calculate the degree of financial leverage first).

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

Round the answer to two decimals

8)

Haunted Forest, Inc.is selling fog machines.

Use the following information about Haunted Forest, Inc. to answer the following questions.

Average selling price per unit $341.

Variable cost per unit $201

Units sold 373

Fixed costs $17,237

Interest expense $4,883

Based on the data above, what is the degree of total (combined) leverage of Haunted Forest, Inc.?

Round the answer to two decimals

9)

Reversing Rapids Co. purchases an asset for $124,553. This asset qualifies as a five-year recovery asset under MACRS. The five-year expense percentages for years 1, 2, 3, and 4 are 20.00%, 32.00%, 19.20%, and 11.52% respectively. Reversing Rapids has a tax rate of 30%. The asset is sold at the end of four years for $14,633.

Calculate tax credit on disposal. (The answer should be entered as positive value).Round the answer to two decimals.