1)

Sarah purchased 100 shares of General Electric stock at a price of $51.40 three months ago. She sold all stocks today for $62.59. During the year the stock paid dividends of $4.54 per share. What is Sarah's holding period return

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

2)

Find the Discounted Payback period for the following project. The discount rate is 8%

__________________________Project X

Initial Outlay $8,863

Year 1 $3,388

Year 2 $3,160

Year 3 $5,600

Year 4 $7,452

Round the answer to two decimal places.

3)

Tall Trees, Inc. is using the net present value (NPV) when evaluating projects. You have to find the NPV for the company's project, assuming the company's cost of capital is 9.60 percent. The initial outlay for the project is $468,945. The project will produce the following after-tax cash inflows of

Year 1: 191,452

Year 2: 141,319

Year 3: 165,864

Year 4: 194,497

Round the answer to two decimal places.

4)

Reversing Rapids Co. purchases an asset for $113,094. 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 $12,213.

Calculate accumulated depreciation over 4 years.Round the answer to two decimals.

5)

Deep Waters, Inc. is using the internal rate of return (IRR) when evaluating projects. Find the IRR for the company's project. The initial outlay for the project is $498,300. The project will produce the following after-tax cash inflows of

Year 1: 163,700

Year 2: 80,100

Year 3: 140,200

Year 4: 156,100

Round the answer to two decimal places in percentage form.(Write the percentage sign in the "units" box) You should use Excel or financial calculator.

6)

Find the profitability index (PI) for the following series of future cash flows, assuming the company's cost of capital is 13.91 percent. The initial outlay is $386,040.

Year 1: $160,493

Year 2: $190,459

Year 3: $145,448

Year 4: $126,757

Year 5: $157,673

Round the answer to two decimal places.

7)

Black Hill Inc. sells $100 million worth of 18-year to maturity 7.58% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $972 for each $1,000 bond. What is the before-tax cost of capital for this debt financing?

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

You should use Excel or financial calculator.