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Q.1 The treasury rate just rose from1% to 1.25% and the risk premium for MXR preferred stock remained at 5%. The dividend for the preferred

Q.1 The treasury rate just rose from1% to 1.25% and the risk premium for MXR preferred stock remained at 5%. The dividend for the preferred stock is $1.50. How much was the price change?

Q.2 A company's profitability is 6% and its sales/assets is 1.5. Its debt/equity ratio is 25%. How much is its ROA?

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