1.) present Value of a Perpetuity A perpetuity pays $140 per year and interest rates are 6.9 percent. How much would its value change if interest rates increased to 9.4 percent?

2.) DuPont Analysis Last year Café Creations, Inc. had an ROA of 21%, a profit margin of 11.6%, and sales of $4.4 million. What is Café Creations's total assets?

3.) Determinants of Interest Rate for Individual Securities A particular security's default risk premium is 4.60 percent. For all securities, the inflation risk premium is 3.60 percent and the real interest rate is 3.05 percent. The security's liquidity risk premium is 1.55 percent and maturity risk premium is 2.50 percent.
The security has no special covenants. What is the security's equilibrium rate of return?