Anticipated holding period return on this investment

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1) What is the EOQ for a firm that annually sells 8,000 units when the cost of placing an order is $4 and the carrying costs are $3 a unit.

2) DEF stock cost $80 and pays a $4 annual dividend. If you expect to sell the stock after 5 years for $100, what is your anticipated holding period return on this investment?

3) Given the following marginal tax schedule, what would be the tax on $95,000 of taxable income?

            $0 to 50,000                15%

            50,001 to 75,000         25%

            75,001 to 100,000       34%

            100,001 to 335,000     39%

4) What is the maximum price you would pay for a bond given the following information? The bond has a 7.5% coupon rate, it matures in 20 years, it pays interest annually, and it will pay the holder $1,000 upon maturity. You require a rate of return of 5% compounded annually.

Reference no: EM13950709

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