# 1 - One year ago, Richard purchased $1,260 worth of Double GG Corporation common stock for $42 per share. During the year, Richard received two dividend payments, each equal to $.05 per share. The current market value of the stock is $44 per share. What yield did Richard earn on his investment during the year? Round your answer to one decimal.

# 2 A $1,000 par value bond pays interest of $35 each quarter and will mature in 10 years. If your simple annual required rate of return is 12 percent with quarterly compounding, how much should you be willing to pay for this bond? Round your answer to the nearest dollar.

# 3 Georges Classics common stock normally sells for 19 times its earnings; that is, its P/E ratio equals 19. If GCs earnings per share are $5.00, what should be its stock price under normal circumstances? Round your answer to the nearest dollar.

# 4 Sassy, Inc. needs $115 million to build a new distribution center. If it issues common stock to raise the funds, the issuance costs will be 8 percent of the total amount issued. If Sassy can issue stock at $40 per share, how many shares of common stock must be issued so that it has $115 million after flotation costs to use to fund the construction of the distribution center?