25. A year ago, Franklin Romanowski purchased 300 shares of Kramerica, Inc. at a price of $8.62 per share. One month ago, the stock paid an annual dividend of $0.10 per share. Today Franklin sold all of his shares for $4.80 per share. What is Franklin's total dollar return on this investment over the past year? a. -$1,116 b. $1,176 C. -$1,146 d. $30 e. $1,116 26. The Magic Pan has a current beta of 1.21. The market risk premium is 8.9% and the risk free rate of return is 3.2%. By how much (how many percentage points) will the Magic Pan's cost of equity increase if the company expands its operations such that the company's beta rises to 1.50? For example, if the cost of equity increased from 32.1% to 33.3%, your answer would be 1.2%. a. 0.29% b. 2.58% c. 16.55% d. 1.65% e. 13.97% 27. Which of the following will never be seen in the final year of a capital budgeting project analysis? a. Cash inflow related to sale of equipment, which was purchased for the project. b. Cash outflow related to taxes paid on a gain from sale of equipment. C. Cash outflow related to purchase of net operating working capital for the project d. Cash inflow related to recovery of net operating working capital for the project e. Cash inflow related to taxes saved on a loss from sale of equipment. 28. Aunt Stella purchased a share of Reggie's Diner's stock one year ago for $20.00. Over the past year, she received a dividend of $2.25 and inflation was 2%. If she sells the stock today for $22.11, what was her return over the past year? a. 19.41% b. 21.80% c. 10.55% d. 19.80% e. 22.24%