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Question 5 (7 Points) a) Kara a retail investor decided to purchase 10 shares of Company A at a per-unit price of $20. She holds

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Question 5 (7 Points) a) Kara a retail investor decided to purchase 10 shares of Company A at a per-unit price of $20. She holds onto shares of Company A for 2 years. In that time frame, Company A paid yearly dividends of $1 per share. After holding them for 2 years, she decided to sell all 10 shares of Company A at a per-unit price of $25.Kara asked you to determine the rate of return during the two years she owned the shares. 3 b) A firm is expected to earn $200 net income for the next year, at the end of which time the firm will be wound-up. the firm book value at the beginning of the year is $1200 and its cost of capital is 12 %. What is the firm estimated market value at the beginning of the year? 2 c) Based on your answer in part (b) the information addresses biased or (unbiased) accounting? Explain 2

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