Smith's Stores have decided to expand a retail shop by building on a vacant lot they own. The company will build a new building at an estimated cost of $1.4 million. The firm will spend another $300 thousand on the parking and access roads. The land was purchased ten years ago at a cost of $500 thousand. Today, the land could be sold for $1.8 million. They will also need to add to the landscaping at a cost of $200 thousand. Finally, the CFO has allocated $300 thousand in new executive salaries to the project. What is the cost of this expansion project? $4.0 million $3.7 million $3.6 million $3.1 million The stated rate (APR) is 12% with monthly compounding. What is the equivalent annual rate (EAR)? 12% 12.68% 14.93% 25.44% Given annual returns of 6%, -4%, -12% and 20%, what is the standard deviation? 13.80% 1.90% 11.76% 10.12% If your nominal rate of return is 8.0 percent and your real rate of return is 3.0 percent, what is the inflation rate? 5.04% 5.20% 4.85% 3.20% A preferred stock pays a semi-annual dividend of $7. If you want to earn 8 percent annually on this investment, what is the maximum amount you should pay to purchase one share of this stock today? $87.50 $77.78 $63.00 $175.00