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46. Klein Cosmetics has the following characteristics: Net profit margin of 5.0%; . Total Assets Turnover ratio of 1.5 times; .No debt and therefore an

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46. Klein Cosmetics has the following characteristics: Net profit margin of 5.0%; . Total Assets Turnover ratio of 1.5 times; .No debt and therefore an equity multiplier of 1.0 Based on this, what is the Return on Equity? a. b. c. d. e. 5% 7.5% 10% 15% Cannot be computed from the information provided. 47. Suppose a State of California bond will pay $1,000 exactly eight years from now, with no other payments. If the going interest rate on these 8-year bonds is 5.4%, how much is the intrinsic value of the bond as of today? a. $551.51 b. $768.18 c. $656.56 d. $518.68 e. $722.22 48. Ten years ago, Lucas Inc. earned $0.50 per share. Its earnings this year were $5.00 per share. What was the Compound Average Growth Rate (CAGR) in earnings per share (EPS) over the 10-year period? a. b. C. d. e. 19.42% 21.75% 25.89% 32.11% 29.78% 49. You inherited an oil well that will pay you $39,000 per year for 25 years, with the first payment being made one year from today. If you think a fair return on the well is 7.5%, value of the well? what is the intrinsic a. $565,476.20 b. $359,848.49 C. $387,888.64 d. $434,730.89 e $579,496.27 50. You deposit $1,000 into an account with a nominal rate of 8%. If the bank compounds interest annually, the effective annual rate will_ a. be greater than 8% b, be less than 8% C, be equal to 8% d. depend upon the number of periods that the $1,000 is held in the account 10

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