1)

Tom purchased 100 shares of Dalia Co. stock at a price of $123.81 four months ago. He sold all stocks today for $126.34. During the year the stock paid dividends of $7.49 per share. What is Tom's effective annual rate?

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

2)

The Yo-Yo Corporation tries to determine the appropriate cost for retained earnings to be used in capital budgeting analysis. The firm's beta is 0.83. The rate on six-month T-bills is 3.34%, and the return on the S&P 500 index is 6.88%. What is the appropriate cost for retained earnings in determining the firm's cost of capital?

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

3)

The Poseidon Swim Company produces swim trucks. The average selling price for one of their swim trucks is $75.97. The variable cost per unit is $21.43, Poseidon swim has average fixed cost per year of $7,597.

Determine the degree of operating leverage for the level of production and sales 391 swim trunks.

Round the answer to two decimal places.

4)

Use the following information about Rat Race Home Security, Inc. to answer the questions:

Average selling price per unit $301.

Variable cost per unit $199

Units sold 441

Fixed costs $9,817

Interest expense 18,740

Based on the data above, what will be the resulting percentage change in earnings per share of Rat Race Home Security, Inc. if they expect operating profit to change -2.8 percent?

(You should calculate the degree of financial leverage first).

(Write the percentage sign in the "units" box).

Round the answer to two decimals

5)

Cheeseburger and Taco Company purchases 14,729 boxes of cheese each year. It costs $28 to place and ship each order and $3.82 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders.

What is the annual ordering cost of cheese inventory.

Round the answer to two decimals.