1. Suppose you purchase a share of stock for $75, hold it for 1 year (during which you collect a dividend of $5.00 per a share), and then sell the stock for $85. What will be your return?
26.3%
20.0%
25.0%
5.0%
2. A replacement project will annually generate additional revenues of $800,000. It has fixed and variable cost total $500,000. It will increase depreciation costs by $220,000. The firma has a marginal tax rate of 34%. What is the projection for the firm's operating cash flow for this replacement.project.
A. $272,,800
B. $8,000
C. 27,200
D. $52,800