The earnings of Thomson Inc have grown from $2.00 per share to $9.00 per share over a 10 year time period. Determine the compound annual growth rate. a. 16.23% b. 8% c. 22.2% d. 100%

Delta Inc has purchased a piece of equipment costing $100,000. It is expected to generate a ten-year stream of benefits amounting to $16,273 per year. Determine the rate of return Delta expects to earn from this equipment. a. 16.3% b. 62.7% c. 10% d. 20%

Your brother put $1,100 into a savings account for you when you were born 21 years ago. This account has been earning interest at a compound rate of 8 percent. What is its value today? a. $3,870 b. $1,967 c. $5,537.22 d. $3,583

What is the future value of a $10,500 college tuition fund if the nominal rate of interest is 10.5 percent compounded monthly for 6 years? a. $17,623.42 b. $19114.50 c. $16,105.10 d. $16,122.26

If the bond has a face (par) value of $1000, what was the market price? a. $1072.50 b. $1045 c. $950 d. $980

Two-years ago, Sears sold a $250 million bond issue to finance the purchase of new jet airliners. These bonds were issued in $1000 denominations with an original maturity of 12 years and a coupon rate of 12%. Determine the value today of one of these bonds to an investor who requires a 14% rate of return on these securities. a. $626 b. $463 c. $896 d. $270

Two years ago, Sears sold $250 million worth of bonds at $1,000 each. The bonds had a maturity of 12 years and a coupon rate of 12%. Today these bonds are selling for $910. Determine the yield-to-maturity (to the nearest tenth of one percent). a. 13.2% b. 5.6% c. 13.7% d. 12.0%

What is the rate of return on a preferred stock that has a par value of $65, a market price of $56.50, and a dividend of $4.19? a. 8.20% b. 11.34% c. 8.82% d. 7.42%