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