1)

You purchased 300 shares of General Electric stock at a price of $72.69 four years ago. You sold all stocks today for $69.25. During that period the stock paid dividends of $3.81 per share. What is your annualized holding period return (annual percentage rate)?

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

2)

A project has an initial outlay of $1,408. It has a single payoff at the end of year 3 of $9,167. What is the net present value (NPV) of the project if the company's cost of capital is 9.41 percent?

Round the answer to two decimal places.

3)

Find the modified internal rate of return (MIRR) for the following series of future cash flows if the company is able to reinvest cash flows received from the project at an annual rate of 10.18 percent.The initial outlay is $444,600.

Year 1: $146,900

Year 2: $130,000

Year 3: $171,400

Year 4: $134,200

Year 5: $177,500

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

4)

Good Morning Food, Inc. is using the profitability index (PI) when evaluating projects. You have to find the PI for the company's project, assuming the company's cost of capital is 6.33 percent. The initial outlay for the project is $362,547. The project will produce the following end-of-the-year after-tax cash inflows of

Year 1: $193,030

Year 2: $196,733

Year 3: $243,842

Year 4: $168,411

Round the answer to two decimal places.

5)

Last year the Black Water Inc. paid dividends $4.44. Company's dividends are expected to grow at an annual rate of 5% forever. The company's common stock is currently selling on the market for $83.13. The investments banker will charge flotation costs $4.18 per share. Calculate the cost of common equity financing using Gordon Model.

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

6)

The Black Bird Company plans an expansion. The expansion is to be financed by selling $37 million in new debt and $53 million in new common stock. The before-tax required rate of return on debt is 10.94% percent and the required rate of return on equity is 16.51% percent. If the company is in the 34 percent tax bracket, what is the weighted average cost of capital?

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

7)

The Poseidon Swim Company produces swim trucks. The average selling price for one of their swim trunks is $31.16. The variable cost per unit is $21.35, Poseidon Swim has average fixed cost per year of $32,416.

What is the break-even point in units for Poseidon Swim?

Round the answer to the whole number.

8)

Irresistible Chips is reviewing its financial condition. The firm generated an operating profit of $4,972,672. The firm's interest expense was $2,586,087.

What is the firm's degree of financial leverage?Round the answer to two decimals

9)

La Cucaracha Pest Control, Inc. is reviewing its financial condition. The firm's operating leverage is 2.87. The firm's financial leverage was of 1.96. What is the firm's degree of combined (total) leverage of La Cucaracha Pest Control, Inc. ?

10)

Reversing Rapids Co. purchases an asset for $192,322. 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 $13,691, what is the cash flow from disposal?

Calculate gain or loss on disposal.Gain should be entered as a positive number. Loss should be entered as a negative number.

Round the answer to two decimals.