A firm with $800,000 of variable costs, $600,000 of fixed costs and $200,000 of depreciation is expected to produce $225,000 in profits. What is its degree of operating leverage (DOL)?

Exam Company is expected to have extraordinary growth of 20% for four years, after which it will face more competition and slip into a constant growth rate of 5%. Its required rate of return is 10%. What is the price of company's stocks?

Treasury Bills (zero coupon bonds with a face value of 1000 TL. with 45 days to maturity are trading currently at a price of 972.88 TL. If you buy this zero coupon now at the current price, what will be the effective annual rate (EAR) that you will get at the end of its maturity?

How much would you gain or loose if you buy a 30- year zero-coupon bond (with a face value of $1,000) today when its yield to maturity is 10% and sell it one year later when its yield to maturity increases to 12%?