Cellar Wines has a debt-equity ratio of 42 percent, sales of $849,000, net income of $76,800, and total debt of $349,000. What is the return on equity?

9.05%

5.24%

15.50%

10.75%

9.24%

Charley wants to sell you an investment that will pay $1,000 per quarter for 25 years. You desire an annual rate of return of 5.5 percent, compounded quarterly. What is the most you would be willing to pay as a lump sum today for this investment?

$212,232.81

$51,152.59

$218,806.30

$57,082.94

$54,165.88

You are considering a job which offers a starting bonus of $5,000 immediately and an annual salary of $62,000, $65,000, and $70,000 for the next three years, respectively. What is this offer worth today at a discount rate of 6 percent?

$178,283.49

$178,383.56

$179,283.56

$180,113.68

$182,983.56

Ratio analysis works best when evaluating the financial statements of two firms:

with one being in a single-line of business while the other is a conglomerate.

of differing sizes in the same industry.

when both are conglomerates with varying lines of business.

of the same size in differing industries.

in the same industry but located in different countries.

Which of the following are the two primary advantages of CAPM? I. Simplicity II. Absence of estimation error III. Applicability to both dividend and non-dividend paying firms IV. Explicit adjustment for risk

I and III

III and IV

I and II

I and IV

II and III