#14

vertan Pou have the following data for the Fosberg Winery. What is Fooberg's rctum on moets (KOA)? Return on equity 15%; Eamings before taxes-S30,000: Total asset tumo er 0.80; Profit margin 4.5%; Tax rate-35%. A) 5.7% B) 6.4% C) 3.9% D) 9.3% E) 3.6% An investment will make annual payments. The first payment of $2.30 will be made o year from today. The amount of the annual payments will grow at 4.5% per year in perpetuity. Ifyou require an effective annual rate of return of 11% on y what price would you be willing to pay for the investment? A) $24.04 B) $36.98 C) $21.85 D) $33.86 15. our investmen E) $35.38 6. Pey Soon has taken out a 20-year, $150,000 mortgage with monthly payments the end ofeach month) at a stated mortgage rte of 6.8% per year compounded semi-annually. If she makes each payment on time, what will be the mortgage