The answers to the following questions are provided please show the work on how to get the answer, and how to solve and set up the problems:

2) A new project will allow you to sell a new product at $60 each. Variable costs are $40 each and fixed costs would run $32,000 per year. If there is an initial investment required of $60,000 and the project has a four year life (no salvage), how many units would you have to sell annually to break-even including the recovery of initial investment. (aka the accounting break-even quantity)? Answer:C

a) 1,600

b) 2,000

c) 2,350

d) 4,250

e) 6,000

3) You purchased a share of common stock at $25.00. One year later, after having received a dividend of $1.00, you noted the stock price was $30.00. What is your approximate return on this stock for the year? Answer:D

a) 2.0%

b) 2.4%

c) 20.0%

d) 24.0%

e) 30.5%

4) The stock of Bingo Corp has an expected return of 10% and Luigi Corp has an expected return of 15%. If you put 40% of your money in Bingo and 60% in Luigi, what is your expected return for your portfolio? Answer:A

a) 13.0%

b) 13.9%

c) 14.2%.

d) 15.0%

e) 52.6%

5) Grand Inc. has a stock beta of 1.2 and Mega Inc. has a stock beta of 2.60. If you put 40% of your money in Grand and 60% in Mega, what will be the beta of your portfolio? Answer:D

a) 1.09

b) 1.56

c) 1.74

d) 2.04

e) 3.20