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please write the # of the questions and the answers ( skip #4) WACC = ward (1 - k Even Sale 1 + 4. What

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WACC = ward (1 - k Even Sale 1 + 4. What is the return on equity for 2009 A. 15.29 percent B. 16.46 percent C. 16.98 percent D. 17.27 percent E. 18.02 percent 5. If you own 300 shares of Ford stock that is priced at $90 and goes through a 1:5 stock split. Following the split, what is your correct information? A. Shares 300, Share Price $450 B. Shares 60, Share Price $450 C. Shares 60, Share Price $18 D. Shares 1500, Share Price $18 E. Shares 1500, Share Price $90 6. Which of the following statements is CORRECT? A. All else equal, high-coupon bonds have less reinvestment risk than B. All else equal, long-term bonds have less price risk than short-term bonds C. All else equal, low-coupon bonds have more price risk than high-coupon bonds D. All else equal, short-term bonds have less reinvestment risk than long-term bonds E. All else equal, long-term bonds have more reinvestment risk than short-term bonds pon bonds 7. Assume inflation is expected to be 5% next year, 7% the following two years, and 8% thereafter. Find the average expected inflation rate over Years I to 7? A. 6.50% B. 7.29% C. 7.90% D. 8.75% E. 9.3196 8. The Cookie Shoppe expects sales of $437,500 next year. The profit margin is 4.8 percent and the firm has a 30 percent dividend payout ratio. What is the projected increase in retained earnings? A. $14,700 B. $16,800 C. $18,300 D. $20,600 E. $21,000 9. Gordon Bombay invested $11,250 in an account that pays 6 percent simple interest. How much more A. $621.41 could he have earned over a 7-year period if the interest had compounded annually? B. $773.58 C. $94084 D. $1,382.68 E. $1,823.28

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