1)

Mary purchased 100 shares of Sweet Pea Co. stock at a price of $47.26 six months ago. She sold all stocks today for $42.70. During that period the stock paid dividends of $2.56 per share. What is Mary's effective annual rate?

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

2)

Nature Food Inc. needs to estimate the cost of financing on preferred stock. The firm has preferred stock outstanding that pays a constant dividend of $3.57 per year. That preferred stock is currently selling for $72.09. However, the underwriter would charge flotation costs of $4.87 per share. What is the form's cost of preferred stock financing?

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

3)

The Poseidon Swim Company produces swim trunks. The average selling price for one of their swim trunks is $61.83. The variable cost per unit is $23.59, Poseidon Swim has average fixed cost per year of $24,635.

What would be the operating profit or loss associated with the production and sale of 339 swim trucks?

4)

Use the following information about Rat Race Home Security, Inc. to answer the questions:

Average selling price per unit $328.

Variable cost per unit $196

Units sold 472

Fixed costs $5,369

Interest expense $16,034

Based on the data above, what is the degree of financial leverage of Rat Race Home Security, Inc.?

5)

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 $345.

Variable cost per unit $207

Units sold 321

Fixed costs $17,260

Interest expense $4,958

Based on the data above, what will be the resulting percentage change in earnings per share if they expect units produced and sold to change 4.8 percent?

(You should calculate the degree of total (combined) leverage first).

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

Round the answer to two decimals

6)

Reversing Rapids Co. purchases an asset for $180,054. 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 year 4 for $13,680.

Calculate After-Tax Cash Flow at disposal.Round the answer to two decimals.

7)

Cheeseburger and Taco Company purchases 9,899 boxes of cheese each year. It costs $20 to place and ship each order and $3.99 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders.

What is the annual carrying costs of cheese inventory.

Round the answer to two decimals.