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An investment of $1,000 annually at the end of each year for the next 15 years will be worth $30,000 at the end of 15

An investment of $1,000 annually at the end of each year for the next 15 years will be worth $30,000 at the end of 15 years. What is the interest rate return on this investment?

8.26%

10.54%

9.27%

none of the above

Sally Jones purchased a share of stock for $42. During the year she received $1.80 in dividends. At the end of the year she sold her stock for $40.50. Calculate the holding period return for her investment (excluding taxes).

4.29%

0.71%

-3.57%

-7.86%

Your are given the following information:

Hotel X

Return: 10%

Weight (proportion of portfolio): 75%

Risk (standard deviation of return): 3%

Hotel Y

Return: 20%

Weight (proportion of portfolio): 25%

Risk (standard deviation of return): 9%

Calculate the expected return of the portfolio.

10.0%

12.5%

15.0%

17.5%

You would like to purchase five 8.5% $10,000 bonds that are currently selling for 102. How much will it cost you to purchase all of these bonds?

$10,200

$50,500

$51,000

none of the above

Jones Restaurant Corporation has reported the following information as of December 31, 2011.

Total revenue: $4,000K

COGS: $2,300K

Gross Profit: $1,700K

Operating Expenses: $1,200K

Fixed Charges: $150K

Income Taxes: $100K

Net Income: $250K

Total Assets as of 12/31/11: $1,000K

Calculate the return on assets for Jones Restaurant Corporation using the DuPont Analysis.

10%

20%

5%

25%

What is the future value of $1,000 invested for 10 years at 5%?

$613.91

$1276.28

$1628.89

none of the above

You would like to purchase five 8.5% $10,000 bonds that are currently selling for 102. How much total interest will you earn in one year from these five bonds?

$4,250

$850

$8,500

none of the above

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