40.)

Income Statement for Xenon Manufacturing:

2008 2009

Total sales 202 212

Cost of sales -148 -172

Gross Profit 54 40

Selling, general,

and administrative expenses -22 -20

Research and development -8 -7

Depreciation and amortization -4 -3

Other income 4 6

Earnings before interest

and taxes (EBIT) 24 16

Interest income (expense) -7 -4

Pretax income 14 12

Taxes -4 -3

Net Income 10 9

Consider the above Income Statement for Xenon Manufacturing. All values are in millions of dollars. If Xenon Manufacturing has 20 million shares outstanding, what is its EPS in 2008?

	a.	$0.50
	b.	$0.25
	c.	$0.40
	d.	$0.60

50.)

If a bank offers you a loan that is payable month at a 10% APR or a 10% EAR, which would have higher monthly payments?

	a.	10% APR
	b.	10% EAR
	c.	they would have the same monthly payments.
	d.	you can not tell from the information given.

53.

Ford Motor Company had realized returns of 15%, 30%, -15%, and -30% over four years. What is the yearly standard deviation of returns for Ford?

a. 24.7%
b.		32.9%
c		27.4%
d		30.1%