1. Calculate the effective annual rates for the following:
a. 24% compounded daily
b. 24% compounded quarterly
c. 24% compounded every four months
d. 24% compounded semi-annually
e. calculates the effective monthly rate for parts (a) to (d)
2. Baker steel is planning on paying an annual dividend of $2.40 a share next year. The market price of the stock is $72 a share and the market return is 14.7 percent. What is the capital gains yield?