5) Your portfolio has 50% of its value invested in Bombardier and the remainder invested in Lululemon. Bombardier stock has a volatility of 25%, while Lululemon stock has a volatility of 10%. If the correlation between Bombardier and Lululemon is 0.1, what is the standard deviation of your portfolio?

A.17.5%

B.16.7%

C.17.4%

D.13%

E.1.7%

8) Cork Bottlers has 84 million shares outstanding and expects earnings at the end of this year of $54 million. Cork plans to pay out 30% of its earnings as a dividend and 10% of its earnings through share repurchases. The firm has an equity cost of capital of 12%. If Tarmac' earnings are expected to grow by 6.5% per year and these payout rates remain constant, what is Tarmac's share price?

A.$4.68

B.$5.24

C.$3.51

D.$11.69

E.$2.14

20) Suppose you invested $45 in TD Bank one month ago. It paid a dividend of $0.60, and you sold it right after the dividend was paid for $44.90. What was your dividend yield and capital gains yield on the investment?

A.0.2%, 1.3%

B.1.1%, 0.2%

C.1.1%, 0.2%

D.1.3%, 1.1%

E.1.3% , 0.2%

37)The Sisyphean Corporation is considering investing in a new cane manufacturing machine that has an estimated life of three years. The cost of the machine is $30,000 and the machine falls under asset class 43 and has a capital cost allowance (CCA) rate of 30%.

The cane manufacturing machine will result in sales of 2000 canes in year 1. Sales are estimated to grow by 10% per year each year through year 3. The price per cane that Sisyphean will charge its customers is $18 each and is to remain constant. The canes have a cost per unit to manufacture of $9 each.

Installation of the machine and the resulting increase in manufacturing capacity will require an increase in various net working capital accounts. It is estimated that the Sisyphean Corporation needs to hold 2% of its annual sales in cash, 4% of its annual sales in accounts receivable, 9% of its annual sales in inventory, and 5% of its annual sales in accounts payable. The firm is in the 35% tax bracket and has a cost of capital of 10%.

The required net working capital in the first year for the Sisyphean Corporation's project is closest to:

A.$2880

B.$2160

C.$3960

D.$3600

E.$5400