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1) __________________ Project X Initial Outlay $8,910 Year 1 $3,520 Year 2 $3,190 Year 3 $3,960 Year 4 $5,000 The answer should be calculated to

1)

__________________ Project X

Initial Outlay $8,910

Year 1 $3,520

Year 2 $3,190

Year 3 $3,960

Year 4 $5,000

The answer should be calculated to two decimal places.

2)

The prices for the White Swan Corporation for the first quarter of the last year are given below. Find the holding period return (percentage return) for February.

End of the month Stock price

January $93.24

February $93.91

March $99.01

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

3)

Genetic Insights Co. purchases an asset for $18,712. This asset qualifies as a seven-year recovery asset under MACRS. The seven-year fixed depreciation percentages for years 1, 2, 3, 4, 5, and 6 are 14.29%, 24.49%, 17.49%, 12.49%, 8.93%, and 8.93%, respectively. Genetic Insights has a tax rate of 30%. The asset is sold at the end of six years for $4,786.

Calculate tax paid on gain on disposal.Round the answer to two decimals.

4)

Jack holds a portfolio with the following securities:

Security Investment Return

Stock A 671,325 -8.9%

Stock B 404,101 3.1%

Stock C 572,659 7.1%

Calculate the expected return of portfolio.Round the answers to two decimal places in percentage form.(Write the percentage sign in the "units" box)

5)

Digging Deep Company's common stock is currently selling for $163.60 per share. Next year, the company dividend is expected to be $10.99 per share. The projected growth at a rate of dividends for this stock is 3.42 percent per year. What rate of return does the investor expect to receive on this stock if he or she purchases the stock today?

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

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