Flag question: Question 21

Question 213.5 pts

One year ago, Latoya purchased 350 shares of Subaru Co. stock for $7,987. The stock does not pay any regular dividends but it did pay a special dividend of $.55 a share last week. This morning, she sold her shares for $21.87 a share. What was the total percentage return on this investment?

Group of answer choices

5.98 percent

-4.15 percent

-1.75 percent

1.91 percent

Flag question: Question 22

Question 223.5 pts

One year ago, you bought a stock for $36.85 a share. You received a dividend of $1.85 per share last month and sold the stock today for $29.17 a share. What is the capital gains yield on this investment?

Group of answer choices

-26.33 percent

-20.84 percent

7.41 percent

-13.98 percent

Flag question: Question 23

Question 233.5 pts

Golden Corral has sales of $667,800, total equity of $301,000, and a debt-equity ratio of .55. What is the capital intensity ratio?

[Hint: A = D + E so first find D using D/E ratio]

Group of answer choices

0.77

0.33

0.70

0.63

Flag question: Question 24

Question 242.5 pts

A firm has current liabilities of $19,800 and current assets of $29,000 of which $6,300 is cash. What is the Cash Ratio?

Group of answer choices

0.32

0.16

1.39

0.86

Flag question: Question 25

Question 252.5 pts

What is the net present value of a project with the following cash flows if the discount rate is 14 percent?

Year	Cash Flow
0	-$41,100
1	15,540
2	19,800
3	18,300

Group of answer choices

$119.01

$1,091.08

-$576.33

-$3,444.44

Flag question: Question 26

Question 262.5 pts

You just won $40,000 and deposited your winnings into an account that pays 4.9 percent interest, compounded annually. How long will you have to wait until your winnings are worth $75,000?

Group of answer choices

29.54 years

13.14 years

19.12 years

17.58 years

Flag question: Question 27

Question 272.5 pts

If sales are $211,000, the profit margin is 6.3 percent, and the capital intensity ratio is .94, what is the return on assets?

Group of answer choices

6.70 percent

3.11 percent

5.12 percent

7.99 percent

Flag question: Question 28

Question 284 pts

Over the past four years, a stock produced returns of 8 percent, 12 percent, 19 percent, and 5 percent, respectively. Based on these four years, what range of returns would you expect to see 95 percent of the time?

[First, find Mean and Std Dev]

Group of answer choices

-1.11 percent to 23.11 percent

-6.17 percent to 33.13 percent

0.00 percent to 45.27 percent

-7.33 percent to 45.21 percent

Flag question: Question 29

Question 292.5 pts

City Motors will sell a $25,000 [PV] car for $645 [PMT] a month for 52 [N] months. What is the interest rate?

Hint: Multiply answer with 12 to get annual rate

Group of answer choices

9.87 percent

14.08 percent

12.11 percent

3.42 percent

Flag question: Question 30

Question 302.5 pts

One year ago, you purchased 600 shares of a stock. This morning you sold those shares and realized a total return of 3.1 percent. Given this information, you know for sure the:

Group of answer choices

stock price increased by 3.1 percent over the last year

stock paid a dividend.

dividend yield is greater than zero

sum of the dividend yield and the capital gains yield is 3.1 percent

Flag question: Question 31

Question 312.5 pts

The required return on a stock is equal to which one of the following if the dividend on the stock decreases by a constant percent per year?

Group of answer choices

Dividend yield + Capital gains yield

(P0/D1) - g

Dividend yield Capital gains yield

(D1/P0)/g

Flag question: Question 32

Question 322.5 pts

Which one of the following statements is correct?

Group of answer choices

Risks and expected return are inversely related.

The reward for bearing risk is called the standard deviation

Risk premiums are inversely related to the standard deviation of returns.

The higher the expected rate of return, the wider the distribution of returns.

Flag question: Question 33

Question 333.5 pts

Towne Realty has total assets of $346,200, net fixed assets of $277,400, current liabilities of $16,100, and long-term liabilities of $124,600. What is the total debt ratio?

Group of answer choices

.41

1.21

.34

.56

Flag question: Question 34

Question 342.5 pts

What is the future value of $6,700 invested for 21 years at 8 percent compounded annually?

Group of answer choices

$28,543.65

$39,421.75

$22,999.54

$33,726.69

Flag question: Question 35

Question 352.5 pts

The primary goal of financial management is to maximize:

Group of answer choices

the market value of existing stock.

current dividends

current profits

market share