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in Word. Show all necessary inputs, formulas and steps clearly. Submit your assignment via the drop box designated. 1. A year ago, you purchased 300

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in Word. Show all necessary inputs, formulas and steps clearly. Submit your assignment via the drop box designated. 1. A year ago, you purchased 300 shares of IXC Technologies, Inc. stock at a price of $9.03 per share. The stock pays an annual dividend of $.10 per share. Today, you sold all of your shares for $28.14 per share. What is your total dollar return on this investment? What is your holding period return in percent? 2. Over the past five years, a stock produced returns of 14%, 22%, -16%, 4%, and 11%. If the returns are normally distributed, what is the probability that an investor in this stock will NOT lose more than 7.4% nor earn more than 21.4% in any one given year? (Hint: Find average return and standard deviation first.) 3. The stock of Martin Industries has a beta of 1.4. The risk-free rate of return is 2.6% and the market risk premium is 7%. What is the expected rate of return on Martin Industries stock? 4. U.S. based Peter's Audio Shop has a cost of debt of 8% and a beta of 1.5. The U.S. Treasury bill is yielding 3% and the market risk premium is 6%. The firm has 100,000 shares of common stock outstanding at a market price of $20 a share. The bond issue has a total market value of $500,000. The tax rate is 21%. What is the weighted average cost of capital for Peter's Audio Shop? (Hint: Use CAPM to find cost of equity) 5. You are considering an impact investment in Africa that requires an initial cost of $200,000. With the popularity of these types of investment, you estimate the investment will be worth $250,000 next year. What is your rate of return for this investment if your forecast is right and you a) pay cash for the investment? b) borrows 50% of the investment cost? (Ignore all transaction costs and taxes)

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