1 Suppose you want to have $50,000 in ten years.(a)How much would you have to deposit today in an account that pays 10% interest compounded annually?(b)How much would you have to deposit if the interest is compounded quarterly?(c)As an investor would you prefer the annual or quarterly compounding? Explain why.

2 If the Australian market risk premium is 5%, the Australian Treasury Notes 2.5% and the WOW stock has a beta of 1.08, according to the CAPM,(a)what is the expected return for this stock?(b)What is the market return?(c)According to WOW's beta how would you define this share?

3 Consider the following table that contains selected financial data for Woolworths (WOW) for financial year 2018.

Net

Sales

Cost of Sales

Accounts Receivable

Invent.

Accounts Payable

Curr.

Ass.

Curr.

Lia.

WOW

59,965

40,256

420

4,233

5,316

7,181

9,196

Using the data contained in the table,(a)calculate the cash conversion cycles for WOW in 2018 (Show all your calculations).(b)Please interpret WOW CCC in 2018.

4 Assume that you bought the WOW shares for $32.54 on the 19 December 2018 and you sold them on the 18 December 2019 for $36.43.(a)What would be the 1 Year Holding Period Return?(b)If you owned 1000 shares of WOW what would have been your capital gain/loss?