1. A stock pays a constant annual dividend and sells for $56.07 a share. Is the market rate of return on this stock is 12.2 percent, why is the amount of the next annual dividend?
2. A U.S. Treasury bill with 128 days to maturity is quoted at 98.63. What are the bank discount yield, bond equivalent yield, and effective annual return for this bond?
3. What is the average tax rate for a firm with taxable income of $131,013?