1. What is the holding period return to an investor who bought 200 shares of Neabsco Oil ten months ago for $46 a share, received two $100 dividend checks, and sold the stock today at $48 a share?

2. What is the annualized period return to an investor who bought 200 shares of Neabsco Oil ten months ago for $46 a share, received two $100 dividend checks, and sold the stock today at $48 a share? Research what an annualized return is on your own.

3. What is the market price of a share of stock for a firm that pays dividends of $1.50 per share, has a P/E of 16, and a dividend payout ratio of 0.4? (Hint look up the dividend payout ratio and the P/E ratio)

4. Determine the amount you would be willing to pay (the present value) for a $1,000 par value bond paying $90 interest each year (annual) and maturing in 12 years, assuming you wanted to earn a 10% rate of return. Fill out the table below and check your answer with the financial calculator.

12 year Bond -->				10.0000%
				Present
Time	Interest	Maturity	Total	Value of
	Payment	Payment	Cash Flow	Cash Flow
1	90	0	90.00
2
3
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5
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7
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9
10
11
12
Total present value ----------------------------------->

I would be willing to pay the present value above