What is the effective annual interest rate

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1. Juan deposits $6,000 into a savings account that pays 7.7% per year, continuously compounded. What is the effective annual interest rate? Determine the value of his account at the end of two years.

2. Stocks A and B have the following data. Assuming the stock market is efficient and the stocks are in equilibrium, which of the following statements is CORRECT? A B Price $25 $40 Expected growth 7% 9% Expected return 10% 12%

3. Ilas 4-Wheeler, Inc. has an ROE of 16.66 percent, equity multiplier of 1.40, and a profit margin of 17.50 percent. What is the total asset turnover and the capital intensity? (Round your answers to 2 decimal places.)

Reference no: EM131960024

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