1) What is the EOQ for a firm that annually sells 8,000 units when the cost of placing an order is $4 and the carrying costs are $3 a unit.
2) DEF stock cost $80 and pays a $4 annual dividend. If you expect to sell the stock after 5 years for $100, what is your anticipated holding period return on this investment?
3) Given the following marginal tax schedule, what would be the tax on $95,000 of taxable income?
$0 to 50,000 15%
50,001 to 75,000 25%
75,001 to 100,000 34%
100,001 to 335,000 39%
4) What is the maximum price you would pay for a bond given the following information? The bond has a 7.5% coupon rate, it matures in 20 years, it pays interest annually, and it will pay the holder $1,000 upon maturity. You require a rate of return of 5% compounded annually.