Question1)

year price dividend 1 $40 .... 2 $46 $2.00 3 $49 $2.45 4 $47 $0.00 5 $52 $3.00 6 $55 $2.75

A)Calculate the total return for R1-R5 B)Calculate arithmetic return C)Calculate holding period return D)Calculate geometric return Show workings and calculation for all

Question2) Inspiroy is an all equity firm (Plan A) with 200,000 shares outstanding. The company wants to recapitalize and issue debt of $1.2 million with an interest of 9% (Plan B). After recapitalization Inspiroy will have 180,000 shares and pays no taxes.

A)If EBIT is $800,000 which plan has higher EPS? H B)If EBIT is $1400,000 which plan has higher EPS? C)What is Break even EBIT? Show workings and calculation for all