You purchased 250 shares of a particular stock at the beginning of the year at a price of $68.12. The stock paid a dividend of $.85 per share, and the stock price at the end of the year was $76.45. What was your dollar return on this investment?
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A 1000 seven-year 6% bond with semi-annual coupons is redeemable for 1065. It was originally purchased at issue for 970. It is sold after 45 months for 995. Find the accrued interest by the theoretical method using the new yield to maturity.
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Two years ago, you invested $2,500. Today it is worth $2,809. What rate of interest per annum did you earn? Twenty years ago, your mother invested $15,000. Today, that investment is worth $76,681. What is the average annual rate of return she earned ..
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Four years ago, E retired as Financial Director of an airport company to become an ethical entrepreneur. He now employs ten people producing natural spring water and selling it in both still and sparkling varieties in individually sized plastic bottl..
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Hard Spun Industries (HSI) has a project that it expects will produce a cash flow of $1.8 million in 13 years. To finance the project, the company needs to borrow $1.0 million today. The project will also produce intermediate cash flows of $100,000 p..
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Hewitt Packing Company has an issue of $1,000 par value bonds with a 11 percent annual coupon interest rate. The issue has ten years remaining to the maturity date. Bonds of similar risk are currently selling to yield a 12 percent rate of return. The..
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Imagine what the financial world would like look in both the U.S. and in the world if the Federal Reserve did not exist. Provide support for your rationale.
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Moby Dick Corporation has sales of $4,635,480 income tax of $400,651; the selling general and administrative expenses of $294,228; depreciation of $395,852; cost of goods of $2,543,550; and interest expense of $188,723. Calculate the amount of the fi..
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R.S. Green has 250,000 shares of common stock outstanding at a market price of $28 a share. Next year's annual dividend is expected to be $1.55 a share. The dividend growth rate is 2 percent. The firm also has 7,500 bonds outstanding with a face valu..
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Maggie's Muffins, Inc., generated $4,000,000 in sales during 2013, and its year-end total assets were $2,600,000. Also, at year-end 2013, current liabilities were $1,000,000, consisting of $300,000 of notes payable, $500,000 of accounts payable, and ..
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Callaghan Motors' bonds have 20 years remaining to maturity. Interest is paid annually, they have a $1,000 par value, the coupon interest rate is 10.5%, and the yield to maturity is 11%. What is the bond's current market price? Round your answer to t..
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A firm has debt of $7,000, equity of $12,000, a leveraged value of $8,900, a cost of debt of 7%, a cost of equity of 14%, and a tax rate of 30%. What is the firm's weighted average cost of capital?
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