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I'm having trouble getting to the answers of these multiple choice questions. I was hoping someone could please help me with step by step solutions.

I'm having trouble getting to the answers of these multiple choice questions. I was hoping someone could please help me with step by step solutions. I do have some of the correct answers highlighted. Thanks!

8.Last year Domino's Pizza had sales of $500,000 and a net income of $25,000, and its year-end assets were $250,000. The firm's total-debt-to-total-asset ratio was 45.0%. Based on the DuPont equation, what was the ROE?

a. 13.82%

b.14.51%

c.15.23%

d.16.00%

e. 18.18%

8.GoPro stock is expected to earn 20% in a recession, 15% in a normal economy, and 5% in a booming economy. The probability of a boom is 25% while the probability of a normal economy is 50% and the chance of a recession is 25%. What is the expected rate of return on this stock?

a.13.33%

b.10.00%

c.13.75%

d.10.50%

e.None of the above

8.Given the following information, determine what is the stock's beta:

ri = 11.3%; rrf = 5%;rm = 10%

a.0.86

b.1.26

c.1.10

d.0.80

e.1.00

23.Your parents invested $1000 at the end of each month for the last 10 years to save for your college tuition. The investment is now worth $200,000. What is the nominal interest rate or annual percentage rate on their investments?

a.9.58%

b.7.13%

c.11.77%

d.7.69%

e.12.47%

27.Venus Inc. has a 10% coupon rate bond that matures in 10 years. The bond pays coupon payments semiannually. What is the market price of a $1,000 face value bond if the yield to maturity is 13%?

a.$834.72

b.$849.04

c.$867.80

d.$783.52

e.$815.82

28.Apple's bonds currently sell for $1,150 and have a par value of $1,000. They pay an 8% annual coupon rate and have a 15-year maturity. What is their yield to maturity (YTM) of the bond?

a.6.41%

b.3.96%

c.5.60%

d.4.52%

e.5.30%

29.Neptune Inc.'s bonds currently sell for $1,200 and have a par value of $1,000. They pay a $110 annual coupon and have a 10 years to maturity, but they can be called in 3 years at $1,120. What is their yield to call (YTC)?

a.7.09%

b.7.54%

c.8.28%

d.6.20

e.7.98%

33.Shares of common stock of the Samson Co. offer an expected total return of 10%. The dividend is expected to grow at a constant 4% per year. The dividend yield must be:

a.6.00%

b.10.00%

c.4.00%

d.-4.00%

e.14.00%

34.Mac Inc.'s most recent dividend was $2 per share (D0). The dividend is expected to grow at a rate of 5% per year.The risk-free rate is 2% and the return on the market is 10%.If the company's beta is 0.9, what is the price of the stock today?

a.$50.00

b.$48.55

c.$47.70

d.$51.67

e.$52.56

36.Jack's Pet Shop has a cost of debt of 5%, a cost of equity of 10%, and a cost of preferred stock of 7%. The market capitalization of the common stock is $2,000,000. Preferred stock has a total market value of $1,000,000. The bond issue has a market value of $500,000.The tax rate is 35%. What is the weighted average cost of capital for Jack's Pet Shop?

a.8.18%

b.9.39%

c.6.66%

d.10.16%

e.8.85%

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