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35 Last year Mike bought 100 shares of Dallas Corporation common stock for $53 per share. During the year he received dividends of $1.45 per

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35 Last year Mike bought 100 shares of Dallas Corporation common stock for $53 per share. During the year he received dividends of $1.45 per share. The stock is currently selling for $60 per share. What rate of return did Mike earn over the year? (1 Point) 11.7% 13.2% 14.1% 15.9% 36 This analysis Used to evaluate a firm's performance over time: * (1 Point) Trend or time-series analysis Benchmarking Industry comparative analysis Combined Analysis 37 37 Which asset would the risk-averse financial manager prefer? (See below.) * (1 Point) Asset A B D Initial Investment $15,000 $15,000 $15,000 $15,000 Annual rate of return Pessimistic 8% 5% 11% Most likely 12% 12% 12% 12% Optimistic 14% 13% 15% 14% 3% Asset A Asset B O Asset Asset D 38 A firm has an issue of common stock outstanding that has a stated annual dividend of $4. The required return on the common stock has been estimated to be 16%. The value of the preferred stock is * (1 Point) $64

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