Question 32 Not yet answered Marked out of 1.50 P Flag question The capital gain on an investment property which has been sold is: Select one: a, the sale price as a percentage of the purchase price ob. the sale price minus the purchase price minus debt minus all expenses c. the revenue a property generates minus all the expenses incurred in maintaining the property O d. the sale price of the property as a percentage of investor's initial equity Question 33 Not yet answered Marked out of 200 p Flag question Tarr Inc. has the following financial results for 2017: Sales = $4039830 EBIT = $107443 Average Total Assets = $932311 Net Profit before tax = $74834 Tax = $11321 What is Tarr Inc. ROA? Use 2 decimal places. Do not type % Answer: Question 34 Not yet answered Marked out of 200 Flag question If the risk-free asset return is 0.011, the expected return on the market portfolio is 0.069, the actual return on a stock is 0.071, and its beta is 1.7. What is the Jensen's alpha (the difference between E(R) and actual return of the stock? Use three decimal places in answer. Answer: Question 35 Not yet answered Marked out of 200 7 Flag question Risk-free rate is 3.4%. Expected market return is 6.4%. Compute CAPM return of a stock with a beta of 0.49. Please round your answer to 2 decimal places, i.e., type 12.34, not 0.1234. Do not type "%" in your answer. Answer: Question 36 Not yet answered Marked out of 2.00 P Flag question Hawkeye Productions paid $14.8 per share last year. Growth in dividends is expected to be 7.2% per year for the foreseeable future, and investors require 11% return. Using a DDM model, the fair price of a Hawkeye share should be: (give your answer to two decimal places- DO NOT include a dollar sign): Answer: Question 37 Not yet answered Marked out of 2.00 Flag question Stock ABC currently trades at $11.66. Initial margin requirement is 65% and maintenance margin requirement is 22%. At what price will the margin call be issued? Please round your answer to two decimal places. Do not type "S" in your answer. Answer: Question 38 Not yet answered Marked out of 2.00 P Flag question Assume a coupon of $98 is paid on a XYZ Corporate bond and is purchased at a price of $978.7. If the bond is held for one year and sold for $927.6 what is the total return? Write your answer as a decimal with 3 decimal places (So 34.21% is entered as 0.342) Answer: Question 39 Not yet answered Marked out of 2.00 p Flag question Jane buys 944.5 Blue Sky shares at $8.2. She borrows $4637.9 of the purchase price from the sharebroker at 12% per annum. Six months later, she sells the shares for $12.3 per share. What is her profit as a percentage on her original investment? Answer to 1 decimal place. Do not type "%" in your answer. Answer: Question 40 Not yet answered Marked out of 200 p Flag question Assume that an investor purchased 1 share of XYZ Ltd last year for $40.77 and this year, with the share price at $44.41, writes a three-month call option with an exercise price of $50. If the writer receives a premium of $2.11 what is the total profit or loss made by the investor? Give your answer to two decimal places. Do not type $ Answer: Question 41 Not yet answered Marked out of 2.00 p Flag question Assume that the current one-year bond interest rate is 0.0645 and the two forward rates are 0.0578 in one year's time and 0.0541 in two years' time. What is the current spot interest rate for a three-year bond? Use four (4) decimal places in your answer. Answer: Question 42 Not yet answered Marked out of 200 p Flag question Assume that an investor buys a three-month call option on IBM shares with an exercise price of $44, and pays a premium of $2.65 per share. Each option is for 7 shares. If 1 month later the share price of IBM is $50.37 what is the intrinsic) profit or loss made by the investor? (enter as a figure to 2 decimal places, without dollar sign)