A year ago, Tom purchased 300 shares of WMT stock for $40,500. The stock is currently selling for $163 a share and Tom has decided to sell all of his shares. What is total return that Tom has earned on this investment if he received an annual dividend $2.26 a share?

	a.	-19.50%
	b.	-18.00%
	c.	22.41%
	d.	17.38%

Your firm requires an average accounting return (AAR) of at least 15% on all fixed asset purchases. Currently, you are considering some new equipment costing $487,500. This equipment will have a 6-year life over which time it will be depreciated on a straight line basis to a zero book value. The annual net income from this project is estimated at $55,000 a year for the first 3 years and $28,000 a year for the following three years. Should you accept this project based on the accounting rate of return? Why or why not?

	a.	yes; because the AAR is less than 15%
	b.	no; because the AAR is greater to 15%
	c.	yes; because the AAR is greater than 15%
	d.	no; because the AAR is less than 15%