You just sold 500 shares of stock at a price of $34.20 per share. You purchased the stock for $27.36 per share and have received total dividends of $925. What is the total capital gain on this investment?

You are considering the purchase of a new machine. Your analysis includes the evaluation of two machines that have differing purchase prices, annual maintenance costs, and life spans. Whichever machine is purchased will be replaced at the end of its useful life. You should select the machine that has the:

Jenkins Ceiling Fans is analyzing a project with expected sales of 5,700 units, ±5 percent. The expected variable cost per unit is $168 and the expected fixed costs are $424,000. Cost estimates are considered accurate within a ±3 percent range. The depreciation expense is $156,000. The sales price is estimated at $339 per unit, ±5 percent. The tax rate is 21 percent. The company is conducting a sensitivity analysis with fixed costs of $425,000. What is the OCF given this analysis?

You are comparing two mutually exclusive projects, Project X and Project Z. The crossover point is 11.4 percent. You have determined that you should accept project X if the required return is 12.7 percent. This implies you should:

The accounting manager of Gateway Inns has noted that every time the inn’s average occupancy rate increases by 3.3 percent, the operating cash flow increases by 4.6 percent. What is the degree of operating leverage if the contribution margin per unit is $47?

The bid price always assumes which one of the following?

Ahmad Couture has bonds outstanding with a face value of $1,000, 11 years to maturity, and a coupon rate of 6 percent paid semiannually. What is the company’s pretax cost of debt if the bonds currently sell for $1,067.12?

The market has an expected rate of return of 6.50 percent. A long-term government bond is expected to yield 3.4 percent and a U.S. Treasury bill is expected to yield 2.25 percent. The inflation rate is 2.15 percent. What is the market risk premium?

Nguyen Corporation’s common stock has a beta of 1.38. The risk-free rate is 1.78 percent and the expected return on the market is 14.6 percent. What is the cost of equity?

Galindo Recovery is considering an expansion project with cash flows of −$287,500, $107,500, $196,100, $104,500, and −$92,700 for Years 0 through 4, respectively. Should the firm proceed with the expansion based on the discounting approach to the modified internal rate of return if the discount rate is 13.4 percent? Why or why not?