1. A company has net income of $10,000,000, total assets of $43,000,000, total liabilities of $16,000,000. What is their ROA? What is their ROE?
23%;37%
37%;23%
20%;50%
50%;20%
5%;2%
2. What is the future value of a 15-year ordinary annuity with annual payments of $5400, evaluated at a 12 percent interest rate?
$150,876
$201,310
$440,724
$81,000
3. Watto Co. in the land down under has bonds on the market with 17 years to maturity; they have an annualized YTM of 8%, and a current price of $1,111. The bonds make semi-annual payments (two payments per year). What must be the coupon rate on these bonds?
9.2%
4.6%
10.2%
5.1%
4. The dividend on Carter Motors common stock will be $3.00 in 1 year, $3.50 in 2 years, and $6.00 in 3 years. You can sell the stock for $59 in 3 years. If you require a 12% return on your investment, how much would you be willing to pay for a share of this stock today?
$51.73
$46.50
$44.90
$48.75
5. Feris stock is currently selling for $___. The expected dividend one year from now is $3.00 and the required return is 10%. The dividends will grow at 3% forever?
$3.00
$33.90
$42.86
$90.87