Last year, you purchased a stock at a price of $70.00 a share. Over the course of the year, you received $1.50 per share in dividends and inflation averaged 2 percent. Today, you sold your shares for $73.20 a share. What is your approximate real rate of return on this investment?

A project has a discount rate of 15.5 percent, an initial cost of $109,200, an inflow of $56,400 in Year 1, and an inflow of $75,900 in Year 2. Your boss requires that every project return a minimum of $1.06 for every $1 invested. Based on this information, what is your recommendation on this project?

Which one of the following stocks is correctly priced according to CAPM if the risk-free rate of return is 3.4 percent and the market risk premium is 7.4 percent? Stock Beta Expected Return A .87 .096 B 1.09 .102 C 1.62 .146 D .98 .107 E 1.16 .139

Wayco Industrial Supply has a pretax cost of debt of 8.3 percent, a cost of equity of 14.7 percent, and a cost of preferred stock of 8.9 percent. The firm has 165,000 shares of common stock outstanding at a market price of $33 per share. There are 15,000 shares of preferred stock outstanding at a market price of $43 per share. The bond issue has a face value of $750,000 and a market quote of 101. The company’s tax rate is 21 percent. What is the weighted average cost of capital?

Kelso’s has a debt-equity ratio of .62 and a tax rate of 21 percent. The firm does not issue preferred stock. The cost of equity is 16.3 percent and the aftertax cost of debt is 5.21 percent. What is the weighted average cost of capital?

You purchased 950 shares of Barrett Golf Corporation stock at a price of $36.19 per share. While you owned the stock,you received dividends totaling$.49 per share. Today, you sold your stock at a price of $39.14 per share. What was your total dollar return on the investment?

Able Movers is evaluating a project with cash flows of −$12,800, $7,400, $11,600, and −$3,200 for Years 0 to 3, respectively. Given an interest rate of 8 percent, what is the MIRR using the discounted approach?

Road Kill Restaurant had the following account balances. The change in these accounts represents a net ____ of cash for the year in the amount of _____. Beginning Balance Ending Balance Accounts receivable $ 28,275 $ 26,000 Accounts payable 40,925 42,250 Inventory 20,425 24,250

A cost-cutting project will decrease costs by $66,300 a year. The annual depreciation will be $15,900 and the tax rate is 21 percent. What is the operating cash flow for this project?

A stock has a geometric average return of 14.6 percent and an arithmetic average return of 15.5 percent based on the last 15 years. What is the estimated average rate of return for the next six years based on Blume’s formula?