Your insurance agent is trying to sell you an annuity that costs $50,000 today. By buying this annuity, your agent promises that you will receive payments of $465 per month for 15 years. What is the rate of return expressed as an APR on this investment?

Sixty years ago, your grandmother invested $4,500. Today, that investment is worth $430,065.11. What is the average annually compounded rate of return she earned on this investment?

Choi Tech stock currently sells for $64 per share and the required return is 12 percent. The total return is evenly divided between the capital gains yield and the dividend yield. What is the current dividend per share if it’s the company’s policy to always maintain a constant growth rate in its dividends?

Mashburn Roasters has sales of $807,200, total assets of $768,100, and a net profit margin of 6.68 percent. The firm has a total debt ratio of 54 percent. What is the return on equity?

Kroencke Freight is saving money to build a new loading platform. Three years ago, they set aside $23,000 for this purpose. Today, that account is worth $31,406. What annually compounded rate of interest is the firm earning on this investment?

Next year, Lookout Engineers will pay an annual dividend of $2.06 per share. The company has been reducing its dividends by 1.34 percent annually. What is this stock worth today if the required return is 14.5 percent?

Noma plans to save $4,400 per year for the next 35 years. If she can earn an annual interest rate of 10.2 percent, how much will she have in 35 years?

During the year, Pharr Corporation had sales of $459,000. Costs were $388,000 and depreciation expense was $102,800. In addition, the company had an interest expense of $79,250 and a tax rate of 21 percent. What is the operating cash flow for the year? Ignore any tax loss carry-forward provisions.

Vaca Books has a net profit margin of 5.1 percent, a total asset turnover of 1.84, and a return on equity of 16.2 percent. What is the debt-equity ratio?

Your credit card company charges you 1.25 percent per month. What is the APR on your credit card?