1.(TCO 1) The stock of Trudeau Corporation went from $27 to $40 last year. The firm also paid $2 in dividends during the year. Compute the rate of return.(Points : 15)

Question 2.2.(TCO 2) Given the following financial data, compute the return on assets and return on equity: net income/sales = 8%, sales/total assets = 2.5X, and debt/total assets = 15%.(Points : 15)

Question 3.3.(TCO 5) A convertible bond has a face value of $1,000 and the conversion price is $55 per share. The stock is selling at $25 per share. The bond pays $85 per year in interest and is selling in the market for $945. It matures in seven years. Market rates are 10% annually. (I) What is the conversion ratio? (II) What is the conversion value?(Points : 15)

Question 4.4.(TCO 4) What would be the current yield of a 6.5% coupon bond priced at $950?(Points : 15)

Question 5.5.(TCO 5) If a $100,000 Treasury bond futures contract changes by 7/32, what is the dollar change?(Points : 15)

Question 6.6.(TCO 6) A mutual fund is set up to charge a load. Its net asset value is $23.45 and its offer price is $24.70. What is the dollar value of the load (commission)?(Points : 15)

Question 7.7.(TCO 6) A shopping center has an annual net operating income of $1,035,000 and a capitalization rate of 10%. What is its value?(Points : 15)

Question 8.

8.(TCO 7) An investment has the following range of outcomes and probabilities. Outcomes (Percent) Probabilities of Outcomes 5% .30 7% .25 12% .45 Calculate the expected value and the standard deviation (round to two places after the decimal point where necessary). A. Expected value = 8.65 Standard deviation = 3.12 Refer to Equation 17-1 Ki Pi KiPi 5% .30 1.50 7% .25 1.75 12% .45 5.40 KiPi 8.65(Points : 15)